Mumbai, Aug. 11 -- The Reserve Bank of India (RBI) has released its final guidelines for co-lending, which will be effective from January 1, 2026.

The rules aim to improve transparency, risk-sharing, and borrower protection in partnerships between banks and non-banking financial companies (NBFCs).

However, industry experts believe these norms will also raise operational costs for lenders, especially smaller NBFCs.

A key change is the mandatory use of an escrow account for all transactions. Lenders must update their loan share in records within 15 days of disbursement to keep the co-lending status valid.

The guidelines also require stronger Know Your Customer (KYC) processes, detailed disclosures to borrowers, and regular internal audi...