In 2018, the RBI had released the guidelines on co-origination of loans by banks and non-deposit taking NBFCs.
The Reserve Bank of India (RBI) on October 9 decided to extend the co-origination scheme to all non-banking financial companies (NBFCs) including home finance companies (HFCs) to allow greater operational flexibility to the lending institutions.
In 2018, the RBI had released the guidelines on co-origination of loans by banks and non-deposit taking NBFCs.
The move was aimed at leveraging the reach of NBFCs to help banks meet their priority sector lending targets, leveraging the reach of NBFCs.
Priority sector lending includes loans to sectors such as agriculture, micro-enterprises, social infrastructure, education and renewable energy.First Published on Oct 9, 2020 11:02 am