The Reserve Bank of India may review ``Know Your Customer'' (KYC) and `"customer due diligence'' procedures followed by banks for loans to companies that have come under the scanner of investigating authorities. Banks that have lent to DB Realty have said that their funds are fully secured. However, in addition to ensuring security of loans, RBI has asked banks to do ``enhanced customer due diligence'' for loans where a ``politically exposed person'' is the final beneficiary. In the case of DB Realty, the firm had availed of bank loans and had also provided an indirect loan to Kalaignar TV, a company which would qualify under the RBI definition of a `politically exposed entity''. RBI guidelines require banks to get approval from their top management to loans whenever a ``politically exposed persons'' benefits from a bank loan.
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