Would you please inform me whether an elected delegate of an Urban Co-op. Bank can be contested for Directors Election, if there is a HBL (House Building Loan) in his name ? The loan is very much regular in repayment.
As per RBI’s Master Circular – Board of Directors-UCBs “existing advances may be allowed to continue upto the date when they are due.” . Does the RBI norm allow him to file the nomination for the contesting the post of Director ? In case of OD/CC Loan, the term ‘upto the date when they are due” means the tenure of the loan is to be
considered upto the date of next ‘Date of Renewal’
Eagerly waiting for your kind and valued reply, Sir
I C Naik
5.1 Primary (urban) cooperative banks are prohibited to make, provide or renew either secured or unsecured loans and advances or extend any other financial accommodation to their directors, or their relatives and the firms/concerns/companies in which they are interested with effect from 1 October 2003.
5.2 The following categories of director related loans are exempted from the purview of the above instructions.
- Regular employee-related loans to staff directors on the Board of UCBs;
- Normal loans as applicable to members to the directors on the Boards of salary earners’ co-operative banks and
iii. Normal employee-related loans to Managing Directors of Multi-State co-operative banks.
- Loans to Directors and their relatives against Fixed Deposits and Life Insurance Policies standing in their own name
Master Circular UBD.BPD.MC.No.8/12.05.001/2011-12 dated July 1, 2011