CBI & Kisetsu Saison Finance Partners for MSME Loan

Current Context: The Central Bank of India (CBI) and Kisetsu Saison Finance have entered into a strategic co-lending partnership to offer loans to Micro, Small, and Medium Enterprises (MSMEs) on 28th December 2023.

• This co-lending arrangement is expected to result in a greater expansion of the portfolio by both entities.
• Co-lending or co-origination is a setup where banks and non-banks jointly contribute credit for priority sector lending.
• In this arrangement, both banks and Non-Banking Financial Companies (NBFCs) share the risk in a ratio of 80:20, with 80% of the loan with the bank and a minimum of 20% with the non-banks.

Question:

Q.1 Who entered into a strategic co-lending partnership for MSME loans?
a. Central Bank of India (CBI) and Kisetsu Saison Finance
b. Reserve Bank of India (RBI) and Kisetsu Saison Finance
c. Central Bank of India (CBI) and Reliance Finance
d. Reserve Bank of India (RBI) and Reliance Finance