Current Affairs - Miscellaneous - Discussion

The framework "co-origination model" that has been put in action by Reserve Bank in 2018 under which there is co-origination of loans banks and a certain category of Non-Banking Financial Companies (NBFCs) lends to the priority sector subject to certain condition gas now extended to all the NBFCs. Means housing finance companies (HCFs) will also be able to partner with banks for priority sector lending (PSL). From now, this framework will be known as " Co-lending Model " and the revised guidelines for the same will be issued by the end of October 2020. This decision has been taken to make all priority sector loans eligible for the scheme and give greater operational flexibility to the lending institutions.