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Banks Can Now Co-Originate Loans with NBFCs: RBI
August 06, 2018
In a bid to boost private sector lending, the Reserve Bank of India (RBI) has urged the traditional banks to join hands with Non Banking Finance Companies (NBFCs) to offer priority sector loans. However, the partnerships should involve the sharing of risks and rewards between the two parties with regard to their respective business objectives, it said.
At present, banks are required to ensure that 40% of the loans are sanctioned for the priority sector which includes MSMEs, education loans, and agriculture.
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