Centre amends National Housing Bank Act to bring HFCs under RBI#39;s ambit: Report
The government has activated two Budget proposals laid out to provide relief to the Non-Banking Finance Companies (NBFCs).
The National Housing Bank Act has been amended to bring housing finance companies (HFCs) under the Reserve Bank of India’s (RBI) ambit, according to a CNBC-TV18 report.
Among the other proposals, the implementation of the partial credit guarantee scheme to public sector banks (PSBs) for buying high-rated pool assets of financially sound NBFCs is now operational.
Also, banks can now classify the credit provided to NBFCs (for example, HFCs) for on-lending as priority sector lending.
In the Union Budget for FY 2019-20, the Finance Minister announced that RBI will get greater powers to regulate Non-Banking Finance Companies (NBFCs). The financial crisis in India started with banks and then moved to non-banks and has now engulfed housing finance companies (HFCs) as well.
Also Read: Budget 2019 proposals for the banking and NBFC sectorsSubscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.