MANU/RMIC/0149/2020
Ministry : Reserve Bank of India
Department/Board : Department of Regulation
Circular No. : DOR.NBFC(HFC).CC.No.118/03.10.136/2020-2021
RBI/2020-2021/60
Date : 22.10.2020
Subject: Banking
To,
Housing Finance Companies
Madam/ Dear Sir,
Review of regulatory framework for Housing Finance Companies
Please refer to the Bank's Press Release No.2019-20/419 dated August 13, 2019 and draft regulatory framework placed in public domain on June 17, 2020 seeking comments from stakeholders. Based on the examination of the inputs received, it has been decided to issue the revised regulatory framework for HFCs.
2. In exercise of powers conferred under National Housing Bank Act, 1987, and
Reserve Bank of India Act, 1934, and in supersession of relevant regulations
issued by National Housing Bank (NHB), the instructions as enumerated in the
Annex will be applicable to all HFCs. HFCs shall continue to comply with all
extant instructions issued by NHB, which are not covered in the Annex.
3. Exemption granted to HFCs from the provisions of Chapter III B of Reserve Bank of India Act, 1934 except for section 45-IA (Requirement of registration & net owned funds) was withdrawn on November 11, 2019. On a review, it has been decided to additionally exempt HFCs from section 45-IB (Maintenance of percentage of assets) and section 45-IC (Reserve fund) of the Reserve Bank of India Act. Necessary Notification in this regard will be issued in due course. It is clarified that the corresponding provisions of section 29B and 29C of the National Housing Bank Act, 1987 will, however, be applicable to HFCs.