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The ‘Co-Lending ModeL’
RBI issued updated guidelines on ‘Co-Lending Model’ vide his circular FIDD.CO.Plan.BC.No.8/04.09.01/2020-21 in November 05, 2020
In September 2018, the RBI had announced “coorigination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.
“The arrangement entailed joint contribution of credit at the facility level by both the lenders as also sharing of risks and rewards”, the RBI said.
