RBI relaxes certain requirements for Housing Finance Institutions [Read Notification]

RBI - Housing Finance Institutions - Taxscan

The Reserve Bank of India (RBI) relaxed certain requirements for Housing Finance Institutions.

The RBI has issued this notice in supersession of the earlier notification dated 19th November, 2019.

“The provisions of Sections 45-IA, 45-IB and 45-IC of the Reserve Bank of India Act, 1934 shall not apply to a non-banking financial company which is a Housing Finance Institution as defined in clause (d) of section 2 of the National Housing Bank Act, 1987,” the notification said.

The Section 45-IA pertains to the requirement of registration and net owned fund; Section 45-IB pertains to Maintenance of percentage of assets; and Section 45-IC pertains to reserve fund.

The RBI relaxed provisions for Housing Finance Institutions. Net owned fund of 20 crore rupees specified to commence business.

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