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Informist, Wednesday, Apr. 9, 2025

MUMBAI – The Reserve Bank of India on Wednesday proposed to extend the guidelines on co-lending to all regulated entities and to all loans, not just priority sector loans, Governor Sanjay Malhotra said while announcing the outcome of the Monetary Policy Committee's April meeting. Earlier, the focus of co-lending was on improving credit flow to unserved and underserved sectors of the economy, and making funds available at affordable costs. 

The draft guidelines and regulations will be published later in the day for public consultation, Malhotra said. "We shall finalise these guidelines based on the feedback received," he said.   

RBI guidelines on co-lending, introduced in 2020, allow banks to partner with registered non-bank finance companies, including housing finance companies for joint credit provision to priority sectors, requiring both to share risks and rewards, with the NBFC retaining a minimum 20% share of the loan. 

The MPC lowered the policy repo rate by 25 basis points to 6.00% in a unanimous decision, Malhotra said Wednesday. The committee also unanimously voted to change the policy stance to 'accommodative' from 'neutral', which was adopted in October.  End

Reported by Kabir Sharma

Edited by Tanima Banerjee

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