Tag Archives: Commercial Banks

MUMBAI: RBI has released a draft circular revising its framework for lending to related parties, a move expected to significantly improve ease of doing business in the financial sector. By introducing scale-based materiality thresholds, the draft ensures that only sizeable loans to related parties require board or committee approval, replacing earlier blanket restrictions that often hampered operational flexibility.Independent directors from …

In a move to enhance transparency and borrower flexibility, the Reserve Bank of India (RBI) has barred banks and other regulated lenders from imposing pre-payment charges on floating rate loans availed by individuals for non-business purposes. The new norms, issued under the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025, will be applicable to all loans and advances …