(a) whether Reserve Bank of India has reviewed the guidelines relating to the term loan for providing funds to private
airlines in the country; and
(b) if so, the details thereof, alongwith details of the modified guidelines issued in this regard ?
(a) whether Reserve Bank of India has reviewed the guidelines relating to the term loan for providing funds to private
airlines in the country; and
(b) if so, the details thereof, alongwith details of the modified guidelines issued in this regard ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL)
(a)&(b) : Reserve Bank of India (RBI) has advised the banks to prepare a well defined loan policy approved by their Board
of Directors. The policy should lay down exposure limits to individual / group of borrowers, documentation standards, Sectoral
exposure limits, delegation of powers including powers for write offs and review procedures, maturity and pricing policies, factors
taken into consideration for deciding interest rates above the floor rate, etc. The management of the credit exposure to various
sectors and borrowers is purely an internal management function and Board of Directors of the bank is authorized to frame
suitable policies in this regard.