NHB amends the Housing Finance Companies Directions, 2010

Jun 21, 2019 | by Avantis RegTech Legal Research Team


The National Housing Bank (NHB) on June 17, 2019, has amended the Housing Finance Companies Directions, 2010, for the purpose of enabling it to regulate the housing finance system of the country to its advantage.

Ø  Amendment to Paragraph 3 which specifies the Restriction on acceptance of deposits:

1.       Sub-paragraph (1) has been substituted, namely:

Clause (i): A housing finance company having obtained credit rating for its fixed deposits not below the minimum investment grade rating as above and complying with all the prudential norms, may accept public deposits not exceeding three times of its NOF.

2.       Sub-paragraph (2) has been substituted.

3.       After sub-paragraph (2) the following has been inserted:

Note: NOF for the purpose of determination of the above limits shall mean “net owned fund” as defined under sub-paragraph 1(u) of paragraph 2 of these Directions and  with respect to its position as per the audited accounts as on March 31st of the previous year. Infusion of capital after such balance sheet date may, however, be taken into account for determining the limits.

4.       In Sub-paragraph (3) the following words has been deleted, namely:

“as on the date of commencement of these directions”

Ø  Paragraph 30 which specifies the Requirement as to Capital Adequacy has been substituted.

[Notification No.NHB.HFC.DIR.22/MD&CEO/2019]

Click here to download the Notification.               


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