Please refer to Regulation G-2 of Prudential Regulations
for Corporate/Commercial Banking, dealing with directors,
major share-holders and employees of the banks/DFIs.
2. It has been decided to amend para 1 of the above mentioned
regulation with immediate effect as under:
“Banks/DFIs
shall not enter into leasing, renting and sale/purchase
of any kind with their directors, officers, employees
or such persons who either individually or in concert
with family members beneficially own 5% or more of the
equity of the bank/DFI. This restriction does not apply
in case of purchase of vehicles, laptops, mobile phone
devices and iPads by the paid directors, officers or employees
of the banks/DFIs which remained in their own use, provided
such sale is covered under the employees service rules
duly approved by the Board of Directors of the banks/DFIs
and is effected by the banks/DFIs at least at book value
at the date of such transaction.”
3.
All other instructions on the subject shall remain unchanged.
4. Please acknowledge receipt.