NHB invites public comments on amendments proposed in Regulations for Housing Finance Companies on Capital Adequacy requirements and Borrowing limits

Mar 06, 2019 | by Avantis RegTech Legal Research Team

The National Housing Bank (NHB) has made certain amendments in regulatory framework for Housing Finance Companies (HFCs) on Capital Adequacy requirements and borrowing limits. 

•It has made amendments on Capital Adequacy Ratio (CAR). Every HFC should maintain a minimum capital ratio not less than 12% of its aggregate risk weighted assets and of risk adjusted value of off-balance sheet items, as specified under Para 30(1) of Housing Finance Companies (NHB) Directions, 2010. It proposes to increase the minimum capital adequacy requirement for HFCs, from the present stipulation of 12% by 13-15%.

•It has made amendments on the public deposits and overall borrowings by HFCs.

•It has also proposed to stipulate that the ceiling on public deposits for the applicable HFCs be capped at 3 times of the Net Owned Fund (NOF) of the HFC.

NHB is inviting public comments and suggestions on the proposal from HFCs and other stakeholders by March 31, 2019. The comments need to be forwarded to the General Manager, Department of Regulation and Supervision, National Housing Bank 4th Floor, Core 5-A, India Habitat Centre Lodhi Road, New Delhi -110 003 or by email at [email protected]

Click here to download the Circular.



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