[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.|
Here I have important INDIA real estate news to share with you which is as mention under.
MUMBAI: The Reserve Bank of India (RBI) on Wednesday came out with a slew of directions
related to maintenance of liquidity coverage ratio, risk management, asset classification and
loan-to-value ratio, among others, for housing finance companies (HFCs).
The central bank said these directions, which shall come into force with an immediate effect,
are aimed at preventing the affairs of any HFCs from being conducted in a manner detrimental
to the interest of investors and depositors.
"All non-deposit taking HFCs with asset size of Rs 100 crore and above and all deposit taking
HFCs (irrespective of asset size) shall pursue liquidity risk management, which inter alia should
cover adherence to gap limits, making use of liquidity risk monitoring tools and adoption of
stock approach to liquidity risk," the RBI said.
The board of each HFC would ensure that the guidelines are adhered to.
The RBI issued a Master Direction-Non-Banking Financial Company-Housing Finance Company
(Reserve Bank) Directions, 2021, on Wednesday.
As per the definition, an HFC is an NBFC whose financial assets, in the business of providing
finance for housing, constitute at least 60 per cent of its total assets.
The RBI said HFCs shall maintain a liquidity buffer in terms of liquidity coverage ratio (LCR),
which will promote their resilience to potential liquidity disruptions by ensuring that they have
sufficient high-quality liquid asset (HQLA) to survive any acute liquidity stress scenario lasting
for 30 days.
All non-deposit taking HFCs with an asset size of Rs 10,000 crore and above, and all deposit
taking HFCs irrespective of their asset size will have to achieve a minimum LCR of 50 per cent
By December 1, 2021 and gradually to 100 per cent by December 1, 2025.
Non-deposit-taking HFCs with an asset size of Rs 5,000 crore and above, but less than
Rs 10,000 crore will have to reach a minimum LCR of 30 per cent by December 1, 2021 and
to 100 per cent by December 1, 2025.
As per the new directions, HFCs lending against the collateral of listed shares shall maintain a
loan-to-value (LTV) ratio of 50 per cent.
Read more at: https://realty.economictimes.indiatimes.com/news/allied-industries/reserve-bank-of-india-issues-directions-for-housing-finance-companies/81083096
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