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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues RBI (Mortgage Guarantee Companies) Amendment Directions, 2026

10-Mar-2026 | RBI/2025-26/230 DOR.CAP.REC.No.420/21.01.002/2025-26

RBI has issued the RBI (Mortgage Guarantee Companies) Amendment Directions, 2026. Key Highlights: 1. Para 8(25) has been substituted, which states that the owned fund" means paid up equity capital, free reserves including quarterly profits, contingency reserves maintained as per paragraph 14(a) of the Directions, balance in share premium account, and capital reserves representing surplus arising out of sale proceeds of asset, excluding reserves created by revaluation of asset, as reduced by accumulated loss balance, book value of intangible assets and deferred revenue expenditure. Inclusion of quarterly profits shall be subject to the following conditions: (i) The financial statements shall be subjected to limited review / audit on a quarterly basis by the statutory auditors. (ii) Such profits shall be reduced by average dividend paid in the last three years and the amount which can be reckoned for inclusion. Losses in the current year shall be fully deducted from Owned Fund 2. New Paras 41(3) and 41(4) have been inserted, which states that the applicable Tier 1 Capital for compliance with the norms stated in sub-paragraphs 41(1) and 41(2), shall be determined based on the MGC's latest available financial statements (audited or subject to limited review) and is defined in paragraph 8(31) of the Master Directions.

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Corporate Laws

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