MUMBAI: RBI has tightened norms for deposit-taking housing finance firms and introduced them on an par with non-banking finance firms. The brand new norms enhance liquidity necessities, prohibit deposit mobilisation based mostly on credit standing and prohibit department opening. The revised guidelines additionally now permit HFCs to take part in derivatives pertaining to rate of interest, currencies, and credit score dangers.
RBI had begun the method of harmonizing laws of HFCs and NBFCs in 2020 and had stated that it could progress in a phased method to keep away from disruption. The brand new laws makes it far more troublesome for HFCs who aren’t in good monetary well being to boost deposits.
Presently, deposit-taking HFCs are required to carry 13% of public deposits as liquid property. This requirement will enhance to fifteen% by July 2025. Moreover, HFCs should acquire an investment-grade credit standing yearly. The ceiling on the quantum of public deposits might be lowered from thrice to 1.5 occasions their web owned fund.
RBI had begun the method of harmonizing laws of HFCs and NBFCs in 2020 and had stated that it could progress in a phased method to keep away from disruption. The brand new laws makes it far more troublesome for HFCs who aren’t in good monetary well being to boost deposits.
Presently, deposit-taking HFCs are required to carry 13% of public deposits as liquid property. This requirement will enhance to fifteen% by July 2025. Moreover, HFCs should acquire an investment-grade credit standing yearly. The ceiling on the quantum of public deposits might be lowered from thrice to 1.5 occasions their web owned fund.
