RBI Draft Co-lending Guidelines: CLM 1 vs CLM 2 Concerns
Why in the news
Lenders reacted to RBI’s draft co-lending rules, worried about technology readiness and CLM 2.
Models
| Model | Mechanism |
|---|---|
| CLM 1 | Both lenders co-originate and disburse together |
| CLM 2 | NBFC keeps minimum 20%; bank takes 80% |
Implications
- NBFCs must upgrade IT for real-time data sharing; integration may take most of FY26.
- Bank-NBFC alignment needs at least 6 months.
- A CLM 1 focus may disrupt partnerships; industry wants flexibility.
Expected gains
Scalable arrangements, better borrower tracking and credit access beyond priority sectors.
Exam angle
20% retention in CLM 2.