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    Question

    RBI’s co-lending model allows banks and NBFCs to

    jointly lend. Under the 2020 guidelines, what minimum share must NBFCs retain in each loan?
    A 5% Correct Answer Incorrect Answer
    B 10% Correct Answer Incorrect Answer
    C 20% Correct Answer Incorrect Answer
    D 25% Correct Answer Incorrect Answer
    E 50% Correct Answer Incorrect Answer

    Solution

    As per the 2020 co-lending framework, NBFCs must retain at least 20% of each loan on their books, with banks funding the balance. (Note: In Aug 2025, RBI issued new rules requiring each lender to hold at least 10%, effective Jan 2026.)

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