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RBI Tightens Related Party Lending Norms – Stronger Governance, Clearer Guardrails January 22, 2026
Published in: Alerts
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The Reserve Bank of India has notified comprehensive amendment directions on lending to related parties by regulated entities, effective 1 April 2026, significantly strengthening governance, oversight, and disclosure standards.
By expanding definitions, revising materiality thresholds, extending board-level oversight mechanisms, and strengthening monitoring and reporting requirements, RBI reinforces transparency, accountability, and prudential discipline in related party transactions.
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