In exercise of the powers conferred by clause b of sub section 1 of Section 29A of National Housing Bank Act

Last updated: 20 November 2020

Save Share

Quick Summary

The Reserve Bank of India has set a new minimum net owned fund requirement of twenty crore rupees for companies looking to start or continue housing finance as their principal business. Existing companies registered under the National Housing Bank Act, 1987, with a net owned fund below this threshold, have specific deadlines to meet the new requirements. They must reach fifteen crore rupees by April 1, 2022, and twenty crore rupees by April 1, 2023.

RESERVE BANK OF INDIA
(Department of Regulation)
NOTIFICATION
Mumbai, the 18th November, 2020

No. DOR.048/ED(SS)–2020. - In exercise of the powers conferred by clause (b) of sub-section (1) of Section 29A of National Housing Bank Act, 1987 (53 of 1987), the Reserve Bank of India hereby specifies the net owned fund of twenty crore rupees for housing finance institution which is a company to commence housing finance as its principal business or carry on the business of housing finance as its principal business.

Provided that a housing finance institution which is a company holding a Certificate of Registration issued under Section 29A of National Housing Bank Act, 1987 and having net owned fund less than twenty crore rupees, may continue to carry on the business of housing finance institution, if such company achieves net owned fund of fifteen crore rupees before April 01, 2022 and twenty crore rupees before April 01, 2023.

SAURAV SINHA, Executive Director
[ADVT.-III/4/Exty./366/2020-21]

FAQ :

The Reserve Bank of India has specified a net owned fund of twenty crore rupees for housing finance institutions that are companies to commence or carry on housing finance as their principal business.

Yes, existing housing finance companies holding a Certificate of Registration and having a net owned fund less than twenty crore rupees may continue their business if they meet certain conditions.

Existing companies must achieve a net owned fund of fifteen crore rupees before April 1, 2022, and twenty crore rupees before April 1, 2023.

These requirements are specified by the Reserve Bank of India in exercise of the powers conferred by clause (b) of sub-section (1) of Section 29A of the National Housing Bank Act, 1987.

Notification No : No. DOR.048/ED(SS)–2020
Source : http://www.egazette.nic.in/WriteReadData/2020/223172.pdf

174 Views Comment Share Community & General Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments