RBI's Co-Lending Rules to Increase Costs for Lenders

The Reserve Bank of India has released new rules for banks and NBFCs that lend money together.

These rules require more steps, like using special accounts to hold the money and checking who the borrowers are, which will make things more complicated and expensive for lenders.

This means they'll need to spend more on technology, following the rules, and managing how they share the risks.

For smaller lenders, it might be tough to handle these changes, while for the bigger ones, they expect that the new rules will make things easier and will encourage careful risk management.

The goal is to ensure that only strong and well-prepared companies work together to lend money.