Mumbai, Oct 13: The Reserve Bank of India (RBI) has decided to enhance the powers of chairman and managing directors (CMDs) of public-sector banks to waive/write off loans up to Rs 50 lakh, against Rs 10 lakh earlier.The decision was taken with the approval of the Government, the RBI said in a recent circular to the banks.
The RBI said the board of directors of the may, therefore, delegate suitable powers to the CMD in respect of proposals involving write-off/waiver, remission up to Rs 50 lakh.
Consequently, the powers delegated to the CMDs in respect of proposals involving write-off/waiver, remission up to Rs 10 lakh will also stand amended.
After the board takes a view on the delegation of powers to the CMD, the executive director (ED) may be delegated powers to the extent of 75 per cent of those delegated to the CMD, the RBI said.
As a consequence of the revision in the delegation of powers for loan compromise/write-off of proposals, the board may revise the powers of other functionaries of the bank as considered appropriate.
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