What changed
RBI has issued new Directions on credit risk transfer and distribution, covering loan transfers (Part A effective immediately), co-lending arrangements (Part B effective January 1, 2026), and other types of lending and risk transfer arrangements.
What it means for you
These Directions aim to promote the development of a credit risk market, enabling diversification of credit risk and ensuring the availability of market-based credit products for investors. Banks must comply with these Directions to ensure smooth credit risk transfer and distribution.
What you must do
- Review existing co-lending arrangements (CLAs) and ensure compliance with new Directions by January 1, 2026
- Acquire loans only from transferors specified as lenders, unless permitted otherwise
- Ensure that overseas branches comply with loan transfer and acquisition rules
Who it affects
Commercial banks, Banks with overseas branches
What is the effective date for the new Directions?
The Directions overall are effective from November 28, 2025. Part B (Co-Lending Arrangements) comes into force from January 1, 2026, or from any earlier date as decided by a bank as per its internal policy.