Related party lending rules eased for banks
Independent directors from other banks will no longer be classified as related persons, resolving ambiguities that had complicated compliance.
Principle-based exemptions further ease rigid constraints, allowing institutions to tailor lending within the regulatory perimeter.The circular also strengthens supervisory reporting and disclosure requirements.
A wide array of entities—including commercial banks and small finance bank smust now furnish detailed reports on related-party transactions, enhancing transparency.
