The amendments significantly expand and standardise definitions of related persons, related parties, control, promoters, KMPs, specified employees, reciprocally related persons aligning them with the Companies Act and IBC. Banks must adopt comprehensive Board approved credit risk policies with explicit safeguards for related-party lending, including aggregate and sub-limits, materiality thresholds linked to asset size, and mandatory Board or committee approval for material exposures. The directions impose strict prohibitions and conditions on lending to promoters, significant shareholders, directors, and connected entities, require recusal of interested persons, and mandate robust monitoring, whistleblowing, audit reviews, and reporting.
(Link: For Commercial Banks RBI Circular 173/2026 Dated 05/01/2026)
(Link: For Small Finance Banks RBI Circular 174/2026 Dated 05/01/2026)
(Link: For Local Area Banks RBI Circular 175/2026 Dated 05/01/2026)
(Link: For Regional Rural Banks RBI Circular 176/2026 Dated 05/01/2026)
(Link: For Urban Cooperative Banks RBI Circular 177/2026 Dated 05/01/2026)
(Link: For Rural Cooperative Banks RBI Circular 178/2026 Dated 05/01/2026)
(Link: For Non-Banking Financial Companies RBI Circular 179/2026 Dated 05/01/2026)
(Link: For All India Financial Institutions RBI Circular 180/2026 Dated 05/01/2026)