Subsequently Reserve Bank of India has now placed a draft of the changes proposed in the regulations applicable to HFCs. "RBI has undertaken the said review and has identified a few changes which are proposed to be prescribed for HFCs," the central bank said on June 18, 2020.
A review of the extant directions/ guidelines applicable to HFCs has been carried out with a view to regulating HFCs as a category of Non-Banking Financial Company (NBFC). Accordingly, in areas where the extant regulation of HFCs are in tandem with that of NBFCs, the relevant paras in the NBFC Master Directions would be made applicable mutatis mutandis to HFCs. In areas where extant HFC regulation differs from that of NBFCs, either existing provisions would be retained, or changes would be brought out wherever possible while ensuring that the changes are made in a least disruptive manner.
Given below are the major changes envisaged in the regulatory framework for HFCs:
1. Applicable law for the regulation of HFCs:
Companies intending to function as HFCs shall seek registration with the Reserve Bank under Section 29A of NHB Act, 1987 and existing HFCs holding Certificate of Registration issued by NHB need not approach RBI for fresh CoR.
2. Defining the term 'Providing Finance for Housing' or 'Housing Finance'
This story is from the November 2021 edition of BANKING FINANCE.
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This story is from the November 2021 edition of BANKING FINANCE.
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