The Reserve Bank of India, on August 6, 2025 has notified the Reserve Bank of India (Co-Lending Arrangements) Directions, 2025 (“Directions”), repealing the erstwhile “Co-Lending by Banks and NBFCs to Priority Sector”, dated November 05, 2020, issued by the Reserve Bank of India.
These Directions are a significant step towards laying down a comprehensive regulatory framework, broadening the scope of co-lending arrangements, and providing regulatory clarity in relation to prudential concerns and permissibility of co-lending arrangements.
Our team has highlighted both the proposed amendments in the attached update.
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