The revised regulations, effective January 1, 2025, will align the rules for Housing Finance Companies (HFCs) with those for Non-Banking Financial Companies (NBFCs), the RBI announced. Currently, HFCs accepting public deposits operate under more relaxed prudential parameters compared to NBFCs.
The provisions will apply to all deposit-taking HFCs, irrespective of their size, as well as non-deposit-taking HFCs with asset size of Rs 5,000 crore and above, the central bank said.
RBI decided to rationalise the risk weights by linking them only with LTV (Loan to Value) ratios for all new housing loans sanctioned up to March 31, 2022
