The proposed changes seek more harmonisation between NBFC and HFC regulations.
The Reserve Bank of India (RBI) has released a draft framework for housing finance companies (HFCs) and sought comments from the public till July 15. The proposed changes seek more harmonisation between non-banking finance companies (NBFC) and HFC regulations.
Among the proposed changes, RBI wants big HFCs to be categorised as systemically important institutions. Those with an asset size of Rs 500 crore and above will be tagged as systemically important ones and those below this threshold as non-systemically important HFCs.
Similarly, the RBI also wants to ensure its liquidity risk framework, liquidity coverage ratio and securitisation norms that are presently applicable for NBFCs to be made applicable to HFCs.
Watch this edition of Business Insight to know what does this mean for HFCs.
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First Published on Jun 18, 2020 08:40 pm
