Section 34 in Life Insurance Corporation of India (Staff) Regulations, 1960
34. Restrictions on Borrowing and Investments.
(1)No employee shall, except with the previous sanction of the competent authority, lend money to any person possessing land or valuable property within the local limits of his authority, or on interest to any person.Provided that an employee may make an advance of pay to a private servant or give a loan of small amount free of interest to a personal friend or relative, even if such person possesses land within the local limits of his authority.(2)No employee shall, save in the ordinary course of business with a bank or a firm of standing, borrow money from or otherwise place himself under pecuniary obligation to any person within the local limits of his authority, or any other person with whom he is likely to have official dealings, nor shall he permit any member of his family, except with the previous sanction of the competent authority, to enter into any such transaction.Provided that an employee may accept a purely temporary loan of small amount, free of interest, from a personal friend or relative or operate a credit account with a bona fide tradesman.
