--- title: "Reserve Bank of India (Commercial Banks – Credit Risk Management) – Amendment Directions, 2026" date: 2026-03-02 author: "King Stubb & Kasiva" url: https://ksandk.com/newsletter/rbi-2026-credit-risk-norms-related-party/ --- # Reserve Bank of India (Commercial Banks – Credit Risk Management) – Amendment Directions, 2026 Posted On - 2 March, 2026 • By - King Stubb & Kasiva Under this notification, the Reserve Bank of India has amended the 2025 Directions by introducing extensive definitional, structural and substantive changes across multiple chapters of the framework. In ‘Chapter I – Preliminary’, Paragraph 4(1) has been expanded to include several new definitions. These include definitions for “Committee on lending to related parties”, “Contract or arrangement”, “Control”, “Director of a bank”, “Entity”, “Key Managerial Personnel (KMP)”, “Lending”, “Person”, “Promoter”, “Reciprocally Related Person”, “Related Party”, “Related Person”, and “Specified employees”. The insertion of these definitions lays the foundation for a more structured and comprehensive related-party lending framework. Further, certain existing definitions have been substituted. The definition of “Personal Loan” under sub-paragraph 4(1)(xiv) has been replaced to align with the meaning assigned under the Banking Statistics (Harmonised Definitions). Similarly, the definition of “Relative” under sub-paragraph 4(1)(xv) has been replaced and now adopts the meaning provided under Section 2(77) of the Companies Act, 2013 and the rules framed thereunder. In Chapter II, Paragraph 5 relating to Board-approved policies has been amended, indicating changes to governance and policy oversight requirements. In ‘Chapter IV – Statutory Restrictions’, Paragraph 15 has been deleted and a new Paragraph 15A has been inserted in its place. Additionally, Section B.2 and paragraphs 16 to 19 have been deleted, signalling a restructuring of the statutory restriction framework. In Chapter V – Regulatory Restrictions, significant structural changes have been made. Sections A, A.1 and B, along with paragraphs 24 to 42, have been deleted. In their place, a new Section B.1, along with its sub-sections and newly inserted paragraphs 42A to 42T, has been introduced. Overall, the amendments substantially reorganise the regulatory architecture, particularly in relation to related-party definitions, governance oversight and lending restrictions, replacing earlier provisions with a more detailed and structured regime. --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)