India’s domestically held Gold reserve surges 40% in last 5 years: RBI data
Gold reserves held domestically in India surged 40 per cent in the last 5 years, data from the Reserve Bank of India (RBI) said.
In order to improve the flow of credit in the economy, the Reserve Bank of India on Thursday announced a Co-Lending Model (CLM) scheme under which banks along with all registered NBFCs, including housing finance companies (HFCs)can jointly lend.
In a release the central bank said, “In terms of the CLM, banks are permitted to co-lend with all registered NBFCs (including HFCs) based on a prior agreement. The co-lending banks will take their share of the individual loans on a back-to-back basis in their books.”
As per the guidelines the NBFCs shall be required to retain a minimum of 20 per cent share of the individual loans on their books.
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The central bank has also prohibited banks from entering in a co-lending arrangement with NBFC belonging to their promoter group.
RBI said that based on the feedback received from the stakeholders and to better leverage the respective comparative advantages of the banks and NBFCs in a collaborative effort.
“It has been decided to provide greater operational flexibility to the lending institutions, while requiring them to conform to the regulatory guidelines on outsourcing, KYC (know your customer), etc,” RBI said in its release.
The primary focus of the revised scheme, rechristened as thee Co-Lending Model, is to improve the flow of credit to the unserved and underserved sector of the economy and make available funds to the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and greater reach of the NBFCs, as per the RBI.
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