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With reference to Bank- NBFC Co-Lending Model, consider the following statements:
1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.
2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to Bank- NBFC Co-Lending Model, consider the following ...
The introduction of the Bank-NBFC Co-Lending Model to improve credit flow to the priority sector.
2. Under this model, banks and NBFCs can jointly lend to priority sector borrowers in a co-origination arrangement.
3. The co-lending arrangement allows both banks and NBFCs to share the risks and rewards of the loan portfolio.
4. The co-lending model aims to bring NBFCs and banks together to leverage their respective strengths in credit assessment, loan origination, and last-mile connectivity.
5. The co-lending model also helps NBFCs to access low-cost funds from banks, while banks can benefit from the NBFCs' expertise in lending to specific sectors.
6. The RBI has set certain minimum requirements for banks and NBFCs to enter into co-lending arrangements, including a minimum equity contribution from both parties.
7. The co-lending model is expected to increase the flow of credit to the priority sector and help in achieving financial inclusion.
8. The RBI periodically reviews and revises the guidelines for the Bank-NBFC Co-Lending Model to ensure its effectiveness and address any concerns.
9. The Bank-NBFC Co-Lending Model is applicable only to scheduled commercial banks and registered NBFCs.
10. The co-lending model has been widely adopted by banks and NBFCs since its introduction and has resulted in increased credit availability to the priority sector.
Statement 1: In 2018, the RBI had announced the introduction of the Bank-NBFC Co-Lending Model to improve credit flow to the priority sector.
True. The RBI did announce the introduction of the Bank-NBFC Co-Lending Model in 2018.
Statement 2: Under this model, banks and NBFCs can jointly lend to priority sector borrowers in a co-origination arrangement.
True. The Bank-NBFC Co-Lending Model allows banks and NBFCs to co-lend to priority sector borrowers.
Statement 3: The co-lending arrangement allows both banks and NBFCs to share the risks and rewards of the loan portfolio.
True. The co-lending model allows banks and NBFCs to share the risks and rewards of the loan portfolio.
Statement 4: The co-lending model aims to bring NBFCs and banks together to leverage their respective strengths in credit assessment, loan origination, and last-mile connectivity.
True. The co-lending model aims to leverage the strengths of both NBFCs and banks in various aspects of lending.
Statement 5: The co-lending model also helps NBFCs to access low-cost funds from banks, while banks can benefit from the NBFCs' expertise in lending to specific sectors.
True. The co-lending model allows NBFCs to access low-cost funds from banks, while banks can benefit from the expertise of NBFCs in lending to specific sectors.
Statement 6: The RBI has set certain minimum requirements for banks and NBFCs to enter into co-lending arrangements, including a minimum equity contribution from both parties.
True. The RBI has set minimum requirements, including minimum equity contribution, for banks and NBFCs to enter into co-lending arrangements.
Statement 7: The co-lending model is expected to increase the flow of credit to the priority sector and help in achieving financial inclusion.
True. The co-lending model aims to increase the flow of credit to the priority sector and promote financial inclusion.
Statement
2. Under this model, banks and NBFCs can jointly lend to priority sector borrowers in a co-origination arrangement.
3. The co-lending arrangement allows both banks and NBFCs to share the risks and rewards of the loan portfolio.
4. The co-lending model aims to bring NBFCs and banks together to leverage their respective strengths in credit assessment, loan origination, and last-mile connectivity.
5. The co-lending model also helps NBFCs to access low-cost funds from banks, while banks can benefit from the NBFCs' expertise in lending to specific sectors.
6. The RBI has set certain minimum requirements for banks and NBFCs to enter into co-lending arrangements, including a minimum equity contribution from both parties.
7. The co-lending model is expected to increase the flow of credit to the priority sector and help in achieving financial inclusion.
8. The RBI periodically reviews and revises the guidelines for the Bank-NBFC Co-Lending Model to ensure its effectiveness and address any concerns.
9. The Bank-NBFC Co-Lending Model is applicable only to scheduled commercial banks and registered NBFCs.
10. The co-lending model has been widely adopted by banks and NBFCs since its introduction and has resulted in increased credit availability to the priority sector.
Statement 1: In 2018, the RBI had announced the introduction of the Bank-NBFC Co-Lending Model to improve credit flow to the priority sector.
True. The RBI did announce the introduction of the Bank-NBFC Co-Lending Model in 2018.
Statement 2: Under this model, banks and NBFCs can jointly lend to priority sector borrowers in a co-origination arrangement.
True. The Bank-NBFC Co-Lending Model allows banks and NBFCs to co-lend to priority sector borrowers.
Statement 3: The co-lending arrangement allows both banks and NBFCs to share the risks and rewards of the loan portfolio.
True. The co-lending model allows banks and NBFCs to share the risks and rewards of the loan portfolio.
Statement 4: The co-lending model aims to bring NBFCs and banks together to leverage their respective strengths in credit assessment, loan origination, and last-mile connectivity.
True. The co-lending model aims to leverage the strengths of both NBFCs and banks in various aspects of lending.
Statement 5: The co-lending model also helps NBFCs to access low-cost funds from banks, while banks can benefit from the NBFCs' expertise in lending to specific sectors.
True. The co-lending model allows NBFCs to access low-cost funds from banks, while banks can benefit from the expertise of NBFCs in lending to specific sectors.
Statement 6: The RBI has set certain minimum requirements for banks and NBFCs to enter into co-lending arrangements, including a minimum equity contribution from both parties.
True. The RBI has set minimum requirements, including minimum equity contribution, for banks and NBFCs to enter into co-lending arrangements.
Statement 7: The co-lending model is expected to increase the flow of credit to the priority sector and help in achieving financial inclusion.
True. The co-lending model aims to increase the flow of credit to the priority sector and promote financial inclusion.
Statement
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With reference to Bank- NBFC Co-Lending Model, consider the following ...
A November 2020 decision by the Reserve Bank of India (RBI) to permit banks to “co-lend with all registered NBFCs (including HFCs) based on a prior agreement”, has led to unusual tie-ups like the one announced earlier this month between the State Bank of India (SBI) and Adani Capital.
The ‘Co-Lending Model’
- In September 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.
- The arrangement entailed joint contribution of credit at the facility level by both the lenders as also sharing of risks and rewards.
- Subsequently, the central bank allowed the lenders greater operational flexibility, while requiring them to conform to regulatory guidelines.
- The primary focus of the revised scheme, rechristened as ‘Co-Lending Model’ (CLM), was 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.
Bank-NBFC tie-ups
- Several banks have entered into co-lending ‘master agreements’ with NBFCs, and more are in the pipeline.
- On December 2, SBI, the country’s largest lender, signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.
- On November 24, Union Bank of India entered into a co-lending agreement with Capri Global Capital Ltd (CGCL),
- Hence both statements are correct.
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With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?, a detailed solution for With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice With reference to Bank- NBFC Co-Lending Model, consider the following statements:1. In 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.2. Recently SBI signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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