Mumbai: RBI has come out with final co-lending rules for banks and non-banks which allow dual lending with a single KYC. The final norms mandate blended lending rates, irrevocable funding commitments, and escrow-based cashflow distribution, while keeping first loss default guarantee. These, along with capital impacts and lower returns, could make co-lending less attractive for originators. A 15-day loan transfer deadline may also drive lenders toward simpler direct assignment deals, ICRA said. The framework will become effective Jan 1, 2026.Credit enhancement for bonds RBI’s norms on non-fund credit have allowed banks, financial institutions and NBFCs to offer partial credit enhancement to make certain types of bonds safer for investors. This facility can be extended to bonds issued by registered entities-municipal corporations, companies or special-purpose vehicles-for funding any type of project by large, non-deposit-taking NBFCs with assets of Rs 1,000 crore or more, subject to specified conditions.Call rate as policy anchorAn RBI panel has recommended keeping the weighted average call rate as the main monetary policy target. It suggested ending 14-day variable rate repo and reverse repo (VRR/VRRR) auctions as the main liquidity tool, replacing them with 7-day operations and flexible terms up to 14 days when needed. The RBI should usually give at least a day’s notice for such actions, but can act the same day in special cases. Variable rate auctions will continue for all repo and reverse repo operations, including longer tenors. Existing liquidity management tools are considered sufficient, and the daily minimum CRR requirement will stay at 90% of the set level.