(a) whether the Reserve Bank of India (RBI) has issued or formulated any specific
guidelines on overdraft facilities extended by banks to its customers;
(b) if so, the details thereof;
(c) if not, the reasons therefor; and
(d) the steps taken / proposed to be taken by the Government to form a uniform and
transparent overdraft policy to be followed by the banks?
The Minister of State in the Ministry of Finance (Shri Namo Narain Meena)
(a) to (d): Reserve Bank of India has informed that the banks are expected to have a credit
strategy and loan policy which takes into account the organization`s credit and risk appetite.
The facilities offered by banks to the customers would depend on the customers` requirements,
banks` credit and loan policy, and risk perception and is a business decision taken by the Bank.