RBI Issues Directions for Co-Lending Arrangements Between Banks and NBFCs to Streamline Joint Lending Practices

The RBI has issued directions for "co-lending arrangements between banks and NBFCs" to streamline joint lending practices. The new guidelines are aimed at ensuring that these partnerships are transparent, fair, and beneficial to all stakeholders. The RBI has mandated that banks and NBFCs must have a clear policy on co-lending, including a mechanism for risk sharing and a clear process for customer redressal. This move is a significant step towards improving the efficiency and integrity of the co-lending ecosystem.