RBE No.20/1990 : Acceptance of Interest Free Loan by Railway Servants

No.E(D&A)90 GS1-1, dated 13.02.1990

Sub: Railway Services (Conduct) Rules, 1966 – Permission to accept Interest Free Loan, Gift etc – Clarification regarding.

  1. Kindly refer to your D.O. No. SP/CR/BG/3510, dated 11.01.1990 addressed to Secretary, Railway Board on the above subject.
  2. We have had occasion to recently consider the issue raised in your D.O. letter in consultation with D.O.P., who are having identical rules. A Railway servant is not required to obtain any prior sanction for accepting loans even if it exceeds ‘Small Amount’, on interest except in cases where the prohibition laid down in Rule 16(4)(i) is attracted. This prohibition comes into play if the Railway servant concerned lends or borrows etc., from a person, firm or company with whom he is likely to have official dealings or placed himself under pecuniary obligation to such person, firm or company.
  3. However, with the amendment made in Rule 18(3) relating to transactions in immovable property vide Board’s letter No. E(D&A)87 GS1-12, dated 30.10.1987 (RBE No.260/1987) all loans exceeding the prescribed limit are required to be reported etc. under Rule 18(3).

Download Railway Board Circular RBE No. 20/1990

Forward reference⇒RBE No.

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