On November 11, 2019, the Reserve Bank of India issued a circular for withdrawal of exemptions granted to Housing Finance Institutions (“Circular”).
Housing Finance Institutions (“HFIs”), as defined in section 2(d) of the National Housing Bank Act, 1987, were exempt from the provisions of Chapter IIIB of the Reserve Bank of India Act, 1934 (“RBI Act”). Pursuant to the Circular, the aforesaid exemption has been withdrawn and Chapter IIIB of the RBI Act (except section 45-IA, which lays down the requirement of registration and net owned fund) has been made applicable to HFIs.
Necessary notification withdrawing the exemption under section 45-NC of the RBI Act will be issued separately.
This update has been contributed by Aastha (Partner).
7A, 7th Floor, Tower C, Max House,
Okhla Industrial Area, Phase 3,
New Delhi – 110020
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