The Reserve Bank of India will release a revised regulatory framework for housing finance companies, as such entities will now be treated as one of the categories of nonbanking financial companies.
The Indian government amended laws to transfer certain regulatory powers over housing finance companies to the central bank from the National Housing Bank, effective Aug. 9, according to an Aug. 13 release.
Due to the amendment, housing finance companies will be treated as one of the categories of nonbanking financial companies for regulatory purposes. In addition, the central bank will review the current regulatory framework for such companies and issue revised regulation in due course.
Housing finance companies will continue to comply with guidelines issued by the National Housing Bank until the central bank issues the revised framework. The companies will also will continue to submit various returns to the National Housing Bank.