| Notification Detail :
RBI/DOR/2025-26/139
DOR.STR.REC.44/13.07.010/2025-26
August 06, 2025
Reserve Bank of India (Co-Lending Arrangements) Directions, 2025
Introduction
Regulated entities (REs) can enter into a lending arrangement with other REs for extension of credit to the borrowers, subject to compliance with the extant prudential regulations. While there is no generic regulatory framework for such lending arrangements, co-lending involving banks and NBFCs has gained traction in the wake of a specific regulatory framework being prescribed for the purpose of priority sector lending in terms of circular FIDD.CO.Plan.BC.No.8/04.09.01/2020-21 dated November 5, 2020.
In view of this and to broaden the scope of co-lending, comprehensive revised Directions on co-lending arrangements (CLA) are now being issued with the objective of providing specific regulatory clarity on the permissibility of such arrangements, while addressing some of the prudential as well as conduct related aspects. These Directions are issued in exercise of the powers conferred by the Sections 21 and 35A of the Banking Regulation Act, 1949, read with Section 56 of the Act ibid; Chapter IIIB of the Reserve Bank of India Act, 1934; and Sections 30A, 32 and 33 of the National Housing Bank Act, 1987.
Short title and commencement
1. These Directions shall be called Reserve Bank of India (Co-Lending Arrangements) Directions, 2025.
2. These Directions shall come into force from January 1, 2026, or from any earlier date as decided by a RE as per its internal policy (“effective date”). Any new CLA entered into after the effective date shall be in compliance with these Directions.
3. Existing CLAs (i.e., the lending arrangements executed before the date of issuance of these Directions) and new CLAs entered into prior to the effective date shall be in compliance with the extant regulations.
Applicability
4. These Directions shall be applicable to CLAs entered into by the following REs:
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Commercial Banks (excluding Small Finance Banks, Local Area Banks and Regional Rural Banks);
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All-India Financial Institutions; and,
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Non-Banking Financial Companies (including Housing Finance Companies).
5. Digital lending arrangements shall continue to be governed by the Reserve Bank of India (Digital Lending) Directions, 2025 (MD-DLD) as amended from time to time.
Provided that, any digital lending arrangement involving co-lending by the REs shall, without derogation to the MD-DLD, be guided by the provisions of these Directions.
6. These Directions shall not apply to loans sanctioned under multiple banking, consortium lending, or syndication.
7. Save as otherwise permitted in terms of these Directions, no RE shall enter into any CLA which is not compliant with these Directions.
Definitions
8. For the purpose of these Directions, CLA refers to an arrangement, formalised through an ex-ante agreement, between a RE which is originating the loans (‘originating RE’) and another RE which is co-lending (‘partner RE’), to jointly fund a portfolio of loans, comprising of either secured or unsecured loans, in a pre-agreed proportion, involving revenue and risk sharing.
9. All other expressions, unless defined herein, shall have the same meaning as have been assigned to them under the Banking Regulation Act, 1949 or the Reserve Bank of India Act, 1934 or any statutory modification or re-enactment thereto or any other relevant regulation or as used in commercial parlance, as the case may be.
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