Ans:
The Ministry of Finance has pushed PSU banks to use co-lending schemes several times. In the beginning, a few PSU banks established partnerships with sizable non-banks. For example, in September 2019, SBI partnered with ECL Finance, a division of Edelweiss Financial Services. However, some of these alliances didn't work out as planned. Bankers claim that while both banks and NBFCs are receptive to these types of tie-ups, the difficulty lies in their practical implementation. The key challenges included IT system implementation because banks and NBFCs used various operating systems and had unique underwriting procedures. All of these issues needed to be resolved for the marriage to take place.