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

Reserve Bank of India (Housing Finance Companies) Directions, 2025

28-Nov-2025 | RBI/DoR/2025-26/365 DoR.FIN.REC.284/03-10-119/2025-26

RBI has issued Reserve Bank of India (Housing Finance Companies) Directions, 2025, effective from 28th Nov 2025.

Applicability: Applicable to all HFCs, including those accepting public deposits.
Key Highlights:
- Stricter Deposit Acceptance Framework:
HFCs accepting public deposits must comply with enhanced conditions, including caps on deposit quantum, strict tenor requirements, prohibition on demand deposits, and tighter restrictions on brokerage and interest-linked incentives.
- Strengthened Prudential & Exposure Norms:
The Directions impose uniform norms on credit concentration, investments, lending to related parties, and project loan exposures. A Board-approved credit and investment policy is now mandatory.
- Revised Asset Classification & Provisioning Rules:
HFCs must adopt RBI's harmonised norms on income recognition, NPA classification, restructuring, and provisioning, including additional provisions for project-related exposures.
- Corporate Governance Enhancements:
The Directions mandate stronger governance architecture through fit-and-proper criteria for directors, audit and nomination committees, and restrictions on appointment of individuals with negative supervisory histories.
- Tightened Disclosure & Reporting Requirements:
HFCs must submit periodic returns to RBI and provide enhanced disclosures in financial statements on capital adequacy, NPAs, restructuring, related-party exposures, and risk concentration.
- Consolidation of Earlier Directions:
All earlier guidelines on HFCs stand repealed, with a savings clause protecting past approvals and actions.

For more information, kindly refer to the attached document.

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