RBI Governor Sanjay Malhotra noted that the extant guidelines on co-lending are applicable only to arrangements between banks and NBFCs for priority sector loans

In a bid to give a fillip to co-lending, RBI Governor Sanjay Malhotra said it will not be restricted just to arrangements between banks and NBFCs for priority sector loans but to all forms of arrangements among lenders (regulated entities).

Malhotra noted that the extant guidelines on co-lending are applicable only to arrangements between banks and NBFCs for priority sector loans.

In light of the evolution of such lending practices, and the potential of such lending arrangements in catering to the credit needs of a wider segment in a sustainable manner, it has been decided to expand the scope for co-lending and issue a generic regulatory framework for all forms of co-lending arrangements among REs, he said.

In this regard, the RBI will issue draft guidelines for public comments.

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Published on April 9, 2025