Solomon & Co. is a full-service law firm headquartered in Mumbai, the financial and commercial capital of India, with offices in Mumbai and Pune. Founded in 1909, the firm is ranked amongst the most reputed law firms in the country.
The firm provides high-value legal services across a broad range of practice areas, including Corporate, Mergers and Acquisitions, Business and Trade, Banking and Finance, Capital Markets, India entry, Private Equity, Dispute Resolution, Real Estate and Construction, Insurance and Intellectual Property. Since its inception, Solomon & Co. has been advising Indian and international companies, government organizations and individuals on their most challenging transactions. Our clients range from global banks, investment funds and high net-worth individuals to not-for-profit organizations. Solomon & Co. is a member of Alliott Global Alliance in Mumbai, Pune and Goa.
Section 20 of Banking Regulation Act, 1949 prohibits banks from
giving any loans or advances to its directors.
However, by a notification dated 16 September 2015, the Reserve
Bank of India ("RBI") has specified that the following
loans will be permitted: (i) Loan for purchasing car; (ii) Loan for
purchasing personal computer; (iii) Loan for purchasing furniture;
(iv) Loan for constructing/acquiring a house for personal use; (v)
Festival advance, and (vi) Credit limit under credit card
facility.
The RBI has also decided to allow commercial banks to grant the
above loans to their Chief Executive Officers and Whole Time
Directors without obtaining prior approval from the RBI, subject to
satisfaction of the following conditions: (a) the loans should form
part of the compensation policy approved by the Board of Directors
of the company and (b) the interest rate charged on such loans
cannot be lower than the rate charged on loans to the respective
bank's own employees.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
