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.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets