RBI releases draft circular on ‘Review of regulatory framework for Housing Finance Companies (HFCs) and harmonisation of regulations applicable to HFCs and Non-Banking Finance Companies (NBFCs)’

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....BI releases draft circular on ‘Review of regulatory framework for Housing Finance Companies (HFCs) and harmonisation of regulations applicable to HFCs and Non-Banking Finance Companies (NBFCs)’ <br>News and Press Release<br>Dated:- 16-1-2024<br><BR>The Reserve Bank of India today released the draft circular on 'Review of regulatory framework for HFCs and harmonisation of regulations applicable....

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.... to HFCs and NBFCs'. Comments on the draft circular are invited from NBFCs (including HFCs) and other stakeholders by February 29, 2024. Comments/ feedback, if any, on the draft circular may be forwarded to: The Chief General Manager Department of Regulation, Central Office Reserve Bank of India 2nd Floor, Main Office Building Shahid Bhagat Singh Marg, Fort Mumbai - 400 001 or by email B....

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....ackground Subsequent to transfer of regulation of HFCs from National Housing Bank (NHB), the Reserve Bank had issued revised regulatory framework for HFCs vide circular dated October 22, 2020 wherein it was stated that further harmonisation between regulations of HFCs and NBFCs will be taken up in a phased manner. In view of this, the Reserve Bank has undertaken a review and proposes to harmonise....

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.... certain regulations of HFCs with those applicable to NBFCs viz., deposit directions for deposit taking HFCs, participation of HFCs in various derivative products for hedging purposes, diversification into other financial products, adoption of technical specifications by HFCs under Account Aggregator ecosystem, etc. The draft circular also proposes to review certain directions for deposit taking N....

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....BFCs. This exercise is part of further harmonisation of HFC regulations with NBFC regulations. (Yogesh Dayal) Chief General Manager<BR> News - Press release - PIB....