RDCL will facilitate growth of residential mortgage financing by providing investment avenues to long term institutional investors

RMBS Development Company Limited (RDCL) has now received Certificate of Registration (CoR) from Reserve Bank of India(RBI) to commence operations, on January 23, 2025.

National Housing Bank (NHB), a statutory body under the Government of India has set up RMBS Development Company Limited (RDCL) as the single largest shareholder and is supported by a strong mix of investor classes across Banks, HFC/ NBFC and Insurance company.

The Company is envisioned to play the role of a commercially sustainable market intermediary to facilitate the growth and development of Residential Mortgage-Backed Securitisation (RMBS) market in the country. The operationalization of Company will provide investment avenues to long term institutional investors viz., Insurance Companies, Pension and Provident Funds in the RMBS market. The diverse set of investors shall instil confidence in the ecosystem and bring valuable experience in RMBS market development.

As part of its key business activities, the Company will invest in RMBS issuances, extend second loss credit enhancements, support liquidity, promote standard process and documentation and other related activities for market development.

A well-developed RMBS market can emerge as a reliable complement to existing sources of funding and liquidity for Primary Lending Institutions. During the last 5 years, individual housing loans outstanding have grown from ₹ 17.95 Lakh Crore as on March 31, 2019 to ₹ 33.19 Lakh Crore as on 31^st March 2024 with a CAGR of 13.1% and this growth is expected to continue.

The paid-up Capital of the Company is ₹500 crore with its Registered Office at Mumbai. The Company is expected to commence operations in March, 2025.

Certificate of Registration authorises RDCL to operate as an RMBS market intermediary enabling institutional investment and credit enhancements. Receipt of a Certificate of Registration authorises RMBS Development Company Limited, promoted by National Housing Bank and supported by a diversified investor base, to commence operations as a market intermediary that will invest in RMBS issuances, provide second loss credit enhancements, support liquidity and promote standardized processes and documentation to facilitate institutional investment and development of the RMBS market.