The Presidents/Chief Executives

All Banks/DFIs

Dear Sir/Madam,

AMENDMENT IN REGULATION G-2 OF PRUDENTIAL REGULATIONS FOR CORPORATE/COMMERCIAL BANKING

1. 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.