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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 - Consolidation of Earlier Directions: All earlier guidelines on HFCs stand repealed, with a savings clause protecting past approvals and actions.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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