RBI mandates 10% loan retention for banks, NBFCs under co-lending deals

The RBI has revised its co-lending norms, mandating a 10% loan retention and a loss guarantee for partner lenders. The revised norms are aimed at ensuring greater accountability and risk sharing in the co-lending model. The move is expected to bring more discipline to the lending ecosystem and protect the interests of consumers. The new norms will likely have a significant impact on the fintech sector.