Section 8 in Andhra Pradesh Civil Services (Conduct) Rules, 1964
8. Lending, borrowing and insolvency:
(1)No Government employee shall, save in the ordinary course of business with a bank or a public limited company, himself or through any member of his family or any person acting on his behalf,-(a)lend or borrow or deposit money as a principal or agent, to, or from, or with, any person or firm or private limited company within the local limits of his authority or with whom he is likely to have official dealings or otherwise place himself, under pecuniary obligation to such person or firm; or(b)lend money to any person at interest or in manner whereby return in money or kind is charged or paid :Provided that Government employee may give to, or accept from a relative or a personal friend a purely temporary loan of small amount free of interest or operate a credit account with a bona fide tradesman or make an advance of pay to his private employee;Provided further that nothing in this sub-rule shall apply in respect of any transaction entered into by a Government employee with the previous sanction of the Government.(1A)When a Government employee is appointed or transferred to a post of such nature as would embarrass or influence him in the discharge of his official duties or involve him in the breach of any of the provisions of sub-rule (1), he shall forthwith report the circumstances to the Government and shall thereafter act in accordance with such order as may be made by the Government.(2)The prohibition in sub-rule (1) shall not apply to-(i)any transaction of a Government employee with a co-operative society registered or deemed to have been registered under the law relating to co-operative societies for the time being in force in the State;(ii)a Government employee who lends money while acting as an executor, administrator or a trustee without profit or advantage to himself;(iii)a Government employee who belongs to a Joint Hindu family carrying on the business of money lending as an ancestral profession, provided he takes no active share in that business and is not employed in the district in which the said business of the family is carried on.(3)A Government employee shall so manage his private affairs as to avoid habitual indebtedness or insolvency. A Government employee who is involved in a legal proceeding for insolvency shall forthwith report the full facts to Government.
