New Delhi: The Reserve Bank of India (RBI) has relaxed regulatory restrictions on loans and advances to bank directors and their relatives, six years after they were announced.

As per the revised guidelines, the threshold limit for board approval for personal loans granted to directors of other banks has been raised to ₹5 crore, from ₹25 lakh.

However, considering the sensitivity of the issue and to ensure that directors continue to carry out their functions without being influenced by extraneous considerations, the new threshold would apply only for grant of ‘personal loans’ and not for business loans, banking industry officials said.


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