RBI Introduces Stricter Regulations for Housing Finance Companies
| Aspect | Details |
|---|---|
| Revised Deposit Limits | |
| Ceiling Reduction | Reduced from 3 times to 1.5 times of net owned fund (NoF). |
| Maturity Period | Reduced from 120 months to between 12 and 60 months. |
| Enhanced Liquidity Requirements | |
| Liquid Asset Ratio | Phased increase: 14% by Jan 1, 2025, and 15% by July 2025. |
| Asset Cover | Full asset cover required at all times; shortfalls must be reported to NHB. |
| Additional Regulatory Measures | |
| Regulatory Parity | HFCs to follow same regulations as NBFCs for branches and deposit agents. |
| Investment Limits | Board-approved limits for unquoted shares and non-group companies. |
| Hedging and Market Participation | |
| Hedging Instruments | Allowed to use currency futures, interest rate futures, and CDS. |
| Market Participation | Non-deposit-taking HFCs with assets > Rs 1,000 crore can trade currency options; all HFCs can trade interest rate futures. |