On Apr. 9, IND RBI proposed rules on co-lending arrangements.
IND RBI issued Draft RBI (co-lending arrangements) directions, 2025.
Follows Apr. 2025, IND RBIstatement on developmental, reg policies, see #250395.
Proposal
Offers comprehensive framework for all co-lending arrangements (CLAs) by regulated entities, addressing gaps in existing digital lending and outsourcing guidelines.
Apply to commercial banks (excluding small finance, local area, regional rural banks), all-India FIs, non-banking financial companies including housing finance companies.
Exclude loans over INR 100 crore under multiple banking or consortium lending.
Existing guides for digital lending, P2P lending, loan participation will continue to apply.
REs must update credit policies for CLAs; CLA agreements must define borrower criteria, scope, fees, roles, protections; also disclose parties, roles, interface changes.
Final interest rate must be a blended average based on each RE’s share; fees must follow policy and exclude credit enhancement or default loss guarantee unless allowed.
Separate accounts, escrow mechanisms, borrower-level asset classification are mandated; REs must follow KYC, disclosure, grievance redressal, audit requirements.
Default loss guarantees are allowed up to 5% of outstanding loans under regulated conditions; transfers of such loan exposures must comply with RBI's transfer guides.
Effectiveness
Comment period of the consultation closes on May 12, 2025.
