•  The banks should maintain an arms-length relationship in respect of own subsidiaries or joint ventures; all loans to such companies have to be made at commercial rates and are subject to limits which apply to similar companies. •  There is an aggregate ceiling fixed for loans related to owned funds of the subsidiary.
Capital Adequacy Norms •  Under the risk-weighted asset approach for the purpose of capital adequacy standards, the minimum CRAR has been prescribed at 8% and will be further raised, to 9% (which is already applicable to banks permitted to trade in gold), with effect from 31 March 2000.