The Reserve Bank of India has asked banks with offices abroad to formulate a policy for overseas real-estate transactions.

The RBI said it has come to its notice that some Indian banks have committed certain lapses while buying or selling real estate and taking or letting out property on lease or rentals in some places in foreign countries, it said in a notification on Thursday.

'To avoid such lapses in future, it is advised that boards of directors of banks should lay down policies and formulate detailed operational guidelines to protect the interests of their respective banks,' the RBI said.