The RBI aligns HFCs with NBFCs by 2025, harmonizing their regulations with new guidelines.

The Reserve Bank of India (RBI) is aligning housing finance companies (HFCs) with non-banking financial companies (NBFCs) by 2025, with new guidelines aiming to harmonize their regulations. Measures include raising HFCs' minimum percentage of liquid assets held, increasing the limit of unencumbered approved securities held by HFCs as a percentage of public deposits, and regulating the opening of branches and the appointment of agents for collecting deposits. The RBI has also decided that public deposits accepted or renewed by HFCs will be repayable after 12 months or more but not later than 60 months.

August 12, 2024
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