# Small finance banks seek RBI approval for co-lending 2026-08-15T03:50:49+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Small finance banks have approached the Reserve Bank of India since October 2025 seeking permission to join co-lending arrangements, ETBFSI reports. The industry made two formal representations and held a meeting with the regulator in recent weeks. RBI’s co-lending framework, effective from January 1, 2026, permits eligible commercial banks, NBFCs and All-India Financial Institutions to jointly lend, but excludes small finance banks, regional rural banks and local area banks. RBI’s concern is that outsourcing loan origination could weaken small finance banks’ financial inclusion mandate. The lenders are seeking limited partnerships in specialised segments where they lack infrastructure, such as gold loans. They have proposed safeguards, including caps on participation and prescribed fee structures, rather than unrestricted access. ## Coverage - bfsi.economictimes.indiatimes.com Tags: Manappuram Finance, NBFCs, RBI, small finance banks Canonical: https://indianopinion.org/small-finance-banks-seek-rbi-approval-for-co-lending/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/small-finance-banks-seek-rbi-approval-for-co-lending/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.