💨 Abstract

The Reserve Bank of India (RBI) has proposed a draft framework for co-lending arrangements, aiming to regulate and standardize the practice. ICRA, a rating agency, believes this could lead to lower interest rates for domestic borrowers as it shifts from an all-inclusive interest rate to a blended interest rate. The framework covers a wider range of lending arrangements and asset segments compared to the previous focus on priority sector lending.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖