Current Affairs · Banking Regulation

Consider the following statements regarding the regulatory framework for Co-Lending Arrangements (CLAs) between banks and NBFCs: Statement 1: A bank entering into a co-lending arrangement with an NBFC must ensure that the NBFC has a robust grievance redressal mechanism, including an appointed Nodal Officer, as the NBFC is typically the primary point of contact. Statement 2: Under the co-lending guidelines, while loan sourcing and servicing can be outsourced to the NBFC partner, the bank must conduct an independent assessment of creditworthiness before taking the loan on its books under Model 2 (Non-discretionary co-lending). Statement 3: According to RBI guidelines, banks and NBFCs must maintain a common account for the borrower to facilitate easy repayment and monitoring, while their internal Management Information Systems (MIS) must generate separate statements for their respective shares. Based on these statements, which of the following assessments is correct?