While availing or providing loans from a bank or financial institution, no one shall
commit the following acts:
(a) Avail or provide loans by submitting a false, fake or fake financial statement or by creating artificial business.
(b) Avail or provide over loans by way of unnatural over valuation of collateral security.
(c) Avail or provide loans by way of unnaturally hiking the project cost based on false details.
(d) Avail or provide credit, facility or discounts beyond the authority obtained or limit sanctioned.
(e) Re-avail or re-provide loans from or by other Bank of Financial Institution without having due release of the collateral security once
provided to a Bank or Financial Institution or in excess than the amount covered by the collateral security against the same collateral
security.
Provided that, this restriction shall not be applicable in case of release of loans to be provided under consortium.
(f) Avail loans through an entity having established in the name of a person who, in fact, does not have financial capability to run the
business or, who is a person under undue influence or extend loans knowing the said facts.
(g) Extend credit more than the requirement compared to the customer’s business transaction.
(h) Accept or provide any sort of undue benefit in return to granting credit facility.