RBI proposes revised framework for lending to related partiesLast Updated: October 03, 2025, 21:15 ISTRepresentational image (Image: News18)Mumbai, Oct 3 (PTI) The Reserve Bank on Friday proposed a framework with objectives of ensuring prudence while allowing operational flexibility to banks when they lend to related parties. The RBI has issued draft ‘Reserve Bank of India (Lending to Related Parties) Directions, 2025’ with the aim to provide a harmonised, principle-based framework to be adopted by regulated entities (REs) for inter alia lending to related parties. Recommended StoriesThe draft introduces scale-based materiality thresholds beyond which lending to related parties of an RE would need approval of the board or its committee. top videos View all Swipe Left For Next Video View all“As related parties can be many entities other than what is covered under extant statutory or regulatory restrictions, direct or indirect lending to such related parties remains a regulatory concern. PTI NKD NKD SHWFirst Published: October 03, 2025, 21:15 ISTNews agency-feeds RBI proposes revised framework for lending to related partiesDisclaimer: Comments reflect users’ views, not News18’s.