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The Reserve Bank of India (RBI) has issued a comprehensive regulatory framework titled the Reserve Bank of India (Co-Lending Arrangements) Directions, 2025, aimed at expanding and streamlining co-lending arrangements (CLAs) between banks, Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), and certain other regulated entities. These guidelines will come into effect from January 1, 2026, though entities may voluntarily adopt them earlier.

The RBI says the move is intended to broaden the scope of co-lending beyond its earlier focus on priority sector lending, provide regulatory clarity, and address prudential as well as customer protection concerns.