Question

Under the 'Co-Lending Model' between banks and NBFCs for priority sector lending (including agriculture), what is the typical minimum share of each individual loan that must be retained on the originating NBFC's own books?

Q: Answer-Under the 'Co-Lending Model' between banks and NBFCs for priority sector lending (including agricult...

Under the RBIs co-lending model framework, the originating NBFC is required to retain a minimum of 20 share of the individual loan on its own books, with the partnering bank typically taking on the remaining 80, ensuring shared risk and skin-in-the-game for the NBFC.