Multiple choice

What is the maximum amount of loan against demat shares allowed by banks to individuals?

  1. Rs. 5 lakh

  2. Rs. 10 lakh

  3. Rs. 15 lakh

  4. Rs. 20 lakh

  5. Rs. 25 lakh
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

RBI permits banks to grant loans against dematerialized shares up to a maximum of Rs. 20 lakh per individual borrower. This limit exists to control risk exposure from pledged securities while allowing retail investors to access liquidity from their shareholdings.

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