All articles22 May 2026 6 min read
Compliance
RBI Tightens Co-Lending Disclosures for NBFC Partnerships
A new master direction recasts disclosure expectations for co-lending arrangements, with default-risk transparency now central to the regime.
RI
Rohan Iyer
Financial Regulation Desk
Executive summary
A new master direction recasts disclosure expectations for co-lending arrangements, with default-risk transparency now central to the regime.
The direction reflects the regulator's persistent concern that co-lending has blurred the line between origination and risk ownership.
Boards of partnering NBFCs should expect heightened supervisory engagement, particularly around concentration risk in unsecured retail.
Key takeaways
- Loss-sharing waterfalls must be disclosed at origination.
- Customer-facing communication must identify the lender of record.
- Quarterly aggregate reporting begins from the September cycle.
#RBI#NBFC#Banking
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