The central bank on Tuesday operationalised a Budget proposal to shift regulation of HFCs from the National Housing Bank (NHB) to the RBI. The government had issued a notification appointing August 09 as the date on which the relevant part of that Finance Act, namely, Part VII of Chapter VI shall come into effect.
HFCs will henceforth be treated as one of the categories of non-banking financial companies (NBFCs) for regulatory purposes. Also any housing finance institution, which is a company, desirous of making an application for registration under sub-section 2 of section 29A of the NHB Act, 1987 (as amended by Act 23 of 2019) must approach the department of Non-Banking Regulation at the RBI.1
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- 1. The RBI said, “A housing finance institution, which is a company, desirous of making an application for registration under sub-section 2 of section 29A of the National Housing Bank Act, 1987 (as amended by Act 23 of 2019) may approach the Department of Non-Banking Regulation, Reserve Bank of India.”
Source: Banking Finance