RBI takes over HFC regulation from NHB

The Reserve Bank of India(RBI) has approved a proposal to shift regulation of Housing finance companies(HFCs) from the National Housing Bank(NHB) to the RBI. Hence,HFCs will now be treated as one of the categories of non-banking financial companies(NBFCs) for regulatory purposes. Further,any housing finance institution which is a company desirous of making an application for… Continue reading RBI takes over HFC regulation from NHB

Affordable housing gets a ₹10,000-crore booster

The National Housing Bank(NHB) has decided to infuse an additional Rs 10,000 crore into housing finance companies(HFCs) to improve liquidity in the sector. This move would enable the HFCs to provide individual loans for affordable housing. The government has also approved the budget proposal on one-time partial credit guarantee to public sector banks for purchase… Continue reading Affordable housing gets a ₹10,000-crore booster

RBI begins monitoring HFCs

The Reserve Bank of India(RBI) has started monitoring the liquidity position,asset-liability gap and repayment schedules of housing finance companies(HFCs) on a daily basis. The move to monitor HFCs on a daily basis comes after some HFC had gone into liquidity crisis which had resulted in defaults.This crisis had started since the debt default by IL&FS… Continue reading RBI begins monitoring HFCs

RBI sells entire stake in NHB, Nabard to govt. for ₹ 1,470 cr. in total

The Reserve Bank has divested its stake in National Housing Bank (NHB) and National Bank for Agriculture & Rural Development (Nabard), by making them fully government-owned. This move is part of ending the cross-holding in regulatory institutions and follows the recommendation of the second Narasimham committee report of October 2001.The Narasimham panel had said RBI… Continue reading RBI sells entire stake in NHB, Nabard to govt. for ₹ 1,470 cr. in total

Higher capital adequacy for HFC’s muted

National Housing Bank (NHB),regulator of Housing finance companies(HFC’s) has proposed to increase the capital adequacy ratio of housing finance companies (HFCs) HFC’s to 15% in a phased manner.The proposed norms are being issued in the wake of liquidity problem being faced by HFCs after IL&FS crisis. As per the proposed roadmap,HFCs have to increase minimum… Continue reading Higher capital adequacy for HFC’s muted