RBI Issues Revised Directions On Co-Lending Arrangements

RBI Issued Final Co-lending Norms to Enhance Risk Sharing and Transparency

In August 2025, the Reserve Bank of India (RBI) issued revised co-lending guidelines for banks and Non-Bank Financial Companies (NBFCs) under various provisions of the Banking Regulation Act (1949), Reserve Bank of India Act (1934), and National Housing Bank Act (1987). As per the revised guidelines, it is now mandatory for all Regulated Entities (REs) involved […] The post RBI Issued Final Co-lending Norms to Enhance Risk Sharing and Transparen…

RBI Update - Reserve Bank of India (Co-Lending Arrangements) Directions, 2025. Applicable - Commercial Banks (excluding Small Finance Banks, Local Area Banks and Regional Rural Banks); All-India Financial Institutions; and, Non-Banking Financial Companies

Please find the following update under RBI The RBI (Co-Lending Arrangements) Directions, 2025 provide a regulatory framework for co-lending arrangements (CLAs) between regulated entities (REs) such as banks and NBFCs, effective from January 1, 2026. These guidelines mandate a minimum 10% loan retention by each RE, define roles and responsibilities, and ensure clear borrower disclosures through the Key Facts Statement (KFS). Interest rates must b…

RBI Issues Revised Directions On Co-Lending Arrangements

The Reserve Bank on Wednesday issued revised directions on co-lending arrangements to provide specific regulatory clarity on the permissibility of such arrangements and address some of the prudential as well as conduct-related aspects.Regulated entities, including banks, NBFCs, and All-India Financial Institutions, can enter into a lending arrangement with other REs for extension of credit to the borrowers, subject to compliance with the extant …

RBI issues revised directions on co-lending arrangements

Mumbai, Aug 6 (PTI) The Reserve Bank on Wednesday issued revised directions on co-lending arrangements (CLA) to provide specific regulatory clarity on the permissibility of such arrangements and address some of the prudential as well as conduct-related aspects. Regulated entities (REs), including banks, NBFCs, and All-India Financial Institutions, can enter into a lending arrangement with other REs for extension of credit to the borrowers, subje…