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On 01st April 2023, the Reserve Bank of India (RBI) issued the Master Circular – Guarantees, Co-Acceptances & Letters of Credit – UCBs.
The Master Circular states the following –
(i) A reasonable proportion of the total obligations in respect of unsecured guarantees provided by the bank to all such constituents at any time,
(ii) Reasonable multiple of the shareholdings in the bank
RBI Issues Master Circular in Regard to Guarantees, Co-Acceptances & Letters of Credit – UCBs
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