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RBI/2005-06/291
UBD.PCB.Cir.No.29/13.05.000/2005-06
January 30, 2006
The Chief Executive Officers of all Primary (Urban) Co-operative
Banks
Dear Sir /Madam,
Maximum limit on Advances – Limits on credit
exposure to Individuals/ Group of borrowers - UCBs
Please refer to paragraph 2 (a) of our circular
UBD.DS.cir No:44/13.05.00/2004-05
dated April 15, 2005 on the captioned subject in terms of which the sanctioned
limit or outstanding whichever is higher shall be reckoned for arriving at credit
exposure limit.
2. The matter has been reviewed and it has been
decided that in case of fully drawn term loans, where there is no scope for
re-drawal of any portion of the sanctioned limit, banks may reckon the outstanding
for arriving at credit exposure limit.
3. All other terms and conditions prescribed
in the circular under reference remains unchanged.
4. Please acknowledge receipt to the concerned
Regional Office of Reserve Bank of India.
Yours faithfully,
(N.S.Vishwanathan)
Chief General Manger in-Charge
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