New Delhi, May 25 -- Small Industries Development Bank of India (SIDBI) is working on a co-lending model with Regional Rural Banks (RRBs) to expand affordable MSME credit access across rural India, SIDBI Chairman and Managing Director Manoj Mittal said during the institution's 37th Foundation Day celebrations.

Addressing the event, Mittal said the initiative was conceptualised following directions from Finance Minister Nirmala Sitharaman during a review meeting of RRBs.

"SIDBI was tasked with creating a risk sharing mechanism with the RRBs. The whole project required convincing RRBs, regulatory approvals, creating loan policies for each RRB, and a friendly technology platform," Mittal said.

He added that SIDBI has already conducted a p...