RBI's new co-lending rules: Blended interest rates, single KYC check
The RBI just dropped fresh guidelines for how banks and NBFCs can team up to give out loans—these kick in from January 1, 2026.
The big updates? Loans will now have blended interest rates, cash flows must go through an escrow account, and both lenders can use a single KYC check for borrowers.
These changes aim to make the whole process smoother and more transparent.
What else is changing?
With a new 15-day window to transfer loans, direct assignments might start looking better than traditional co-lending deals—so some lenders could rethink their strategies.
On top of that, the RBI is boosting bond safety by letting big NBFCs and municipal bodies add partial credit enhancements.
Plus, liquidity management is getting an upgrade with shorter auction cycles (7 days instead of 14), aiming to keep things flexible for everyone involved.