RBI tweaks related party lending rules, unveils ‘unified’ framework

The move is aimed at tightening governance and reducing conflicts of interest in lending practices by commercial banks. The revised norms, effective from April 1, 2026, consolidate and replace over a dozen legacy circulars, creating a unified regulatory framework. RBI also introduced scale-based thresholds beyond which banks and non-banking financial companies (NBFCs) will need board approval for lending to related parties.

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