RBI releases guidelines on co-origination of loans by Banks, Non-Deposit taking NBFCs

BE/RBI NOTE/47/2018

In September this year, Reserve Bank of India has released specific guidelines on co-origination of loans by banks, non-deposit taking NBFCs in the Priority Sector.

  • This is mainly aimed to influence the smooth movement of NBFCs in helping the banks in meeting their Priority Sector targets.
  • The Co-origination arrangement is expected to pave way for “Joint contribution of credit by both lenders”.
  • Also, it would pave way for sharing of risks by both Banks and NBFCs as per RBI reports.
  • Priority Sector lending involves
    • Loans to Agriculture,
    • Micro Enterprises,
    • Social Infrastructure,
    • Education and
    • Renewable Energy.

RBI Highlights

Author: Admin Bankedge

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