The Reserve Bank of India has issued a notification to revise the Master Direction on Housing Finance Company (Reserve Bank) Directions, 2021.
The changes include the following:
- Under paragraph 4.1.28 – HFCs are not required to deduct a Right-of-Use (ROU) asset (created in terms of Ind AS 116 – Leases) from Owned Fund, provided the underlying asset being taken on lease is a tangible asset.
- Under para 8C – HFCs shall comply with the instructions contained in the circular ‘Government Debt Relief Schemes (DRS)’ dated December 31, 2024, as amended from time to time.
- Under Weighted risk assets – On balance Sheet items, the Right-of-Use (ROU) asset has been included in point no. 6(d) under “others” category.
- The language of Para 29.3 has been modified and now, it reads as follows:
No HFC shall invite or accept or renew deposits from Non-Resident Indians/ persons of Indian origin, subject to compliance of regulations prescribed vide Foreign Exchange Management (Deposit) Regulations, as amended from time to time, at a rate exceeding the rate specified by the Bank for such deposits with scheduled commercial banks.
A copy of the notification is linked below for ease of reference.
Source: Reserve Bank Of India
