Statutory Meaning & Definition
An arrangement under RBI's Co-Lending Model (CLM) where banks and NBFCs jointly originate and fund priority sector loans, with the bank taking at least 80% of the loan on its books and the NBFC retaining 20%, combining NBFC's reach with bank's lower cost of funds.
Frequently Asked Questions (FAQs)
What is Co-Lending in Indian corporate law?
An arrangement under RBI's Co-Lending Model (CLM) where banks and NBFCs jointly originate and fund priority sector loans, with the bank taking at least 80% of the loan on its books and the NBFC retaining 20%, combining NBFC's reach with bank's lower cost of funds.
Why is Co-Lending important for compliance?
Co-Lending is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about Co-Lending?
Co-Lending is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to RBI:
Used-car dealers can claim ITC on repairs again — and NBFC co-lending fees are now taxable
Published: 29 October 2026
RBI Domestic Money Transfer Directions 2026: Cash Pay-Out and Pay-In Limits Explained
Published: 11 November 2026
RBI CTS Cheque Book Change from 31 December 2026 Is Fake: No New Cheque Books from 1 January 2027
Published: 8 November 2026
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