Module: General Practice
Q10: As per the RBI (Co-Lending Arrangements) Directions, 2025 (effective January 1, 2026), what is the minimum percentage of the individual loan amount that the Originating Entity (NBFC) must retain on its books?
✅ Correct Answer: B
CRITICAL UPDATE (Jan 2026): Old Rule (2020): Minimum retention was 20 per cent.
New Rule (2025/26): To encourage the co-lending model and release capital for NBFCs, the RBI reduced the mandatory retention share to 10 per cent of the individual loan exposure.
Impact: This allows NBFCs to originate more loans with the same capital base while still maintaining "skin in the game". The bank takes the remaining 90 per cent.
New Rule (2025/26): To encourage the co-lending model and release capital for NBFCs, the RBI reduced the mandatory retention share to 10 per cent of the individual loan exposure.
Impact: This allows NBFCs to originate more loans with the same capital base while still maintaining "skin in the game". The bank takes the remaining 90 per cent.