Chapter Six


*Source: (RBI master circular, 1 July 2009, ‘Loans and Advances—Statutory and other restrictions’) part 2, 3, 15

1. RBI guidelines state that banks can decide upon the commitment charge on unutilized credit limits need not be imposed on the following types of loan accounts:(1) sick/weak units, (2) export credit, (3) inland bills financing and (4) loans to other banks and financial institutions subject to the ‘Guidelines on Fair Practices Code for lenders’ issued by the RBI on 5 May 2003.

2. See Section V on ‘Loan Pricing and Customer Profitability Analysis’ in Chapter ‘Uses of Bank Funds—The Lending Function’.

3. In the case of Bank of Maharashtra vs United Construction Company and others (1986, 60 comp cases, 183 (Bom)), a customer ...

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