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Corporate Laws Central Ministry of Finance National Housing Bank Act, 1987

Maintenance of a minimum percentage of liquid assets

19-Dec-2024 | Notification No. DOR.FIN.34/03.10.136/2024-25.

RBI has issued a Notification regarding maintaining a minimum percentage of liquid assets.

By virtue of the Notification, the minimum percentage of liquid assets to be maintained under Section 29B (1), (2) of National Housing Bank Act, 1987 has been revised w.e.f 01.01.2025. Now the new revised value is as below:

1. Every housing finance institution which is a company, accepting public deposits shall invest and continue to invest in India in unencumbered approved securities which shall not be less than 8 percent from 1st Jan 2025 to 30th June 2025 and the same shall not be less than 10 percent on and from 1st July 2025 onwards. (Note: Earlier it was 6.5 percent as per Notification No. No.NHB.HFC.LA-2/MD&CEO/2019)

2. Every housing finance institution which is a company, accepting public deposits shall maintain in India in an account with any scheduled bank in term deposits or certificate of deposits (free of charge or lien) or in deposits with the National Housing Bank or by way of subscription to the bonds issued by the National Housing Bank, or partly in such an account or in such deposit or partly by way of such subscription, together with the above investment, which shall not be less than 14 percent from 1st January 2025 to 30th June 2025 and the same shall not be less than 15 percent on and from 1st July 2025 onwards. (Note: which earlier was 13 percent of the Public Deposits)

Further, the current notification supersedes the earlier notification No.NHB.HFC.LA-2/MD&CEO/2019 issued by RBI in this regard.

Kindly refer to the attached documents for more information.

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