"Reserve Bank of India Tightens HFC Norms to Align with NBFC Regulations.

Banking & Finance

The Reserve Bank of India (RBI) on Monday tightened norms related to public deposit acceptance by housing finance companies (HFCs), which were so far subject to relaxed prudential norms compared to non-banking financial companies (NBFCs). According to the revised guidelines, the RBI has reduced the ceiling on the quantum of public deposits that a deposit-taking HFC, which is in compliance with all prudential norms and minimum investment grade credit rating, can hold — from 3 times to 1.5 times its net owned fund (NoF).


      The central bank said the norms were revised in order to harmonise the guidelines for NBFCs and HFCs.

      There are 97 HFCs in the country, while deposit-taking NBFCs, including HFCs, are only 26. The regulator has not allowed any new NBFC to accept public deposits for close to two decades now.

     

 

     


About RBI,

CEO : Shaktikanta Das
Headquarter : Mumbai
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