NATIONAL HOUSING BANK

(Wholly owned by the Reserve Bank of India )

New Delhi  

THE HOUSING FINANCE COMPANIES (NHB) DIRECTIONS, 2001

 

 

Notification No. NHB.HFC.DIR.2/CMD/2002 dated 24 th April 2002

 

In exercise of the powers conferred by sections 30, 30A, 31 and 33 of the National Housing Bank Act, 1987 (53 of 1987) and all the powers enabling it in this behalf, the National Housing Bank being satisfied that it is necessary in the public interest so to do, hereby directs that sub-paragraph (1) of Paragraph 11 of the Housing Finance Companies (NHB) Directions, 2001 shall, with immediate effect be substituted by the following, namely:-

 

“1(a) On and from 24 th April, 2002, no housing finance company shall invite or accept or renew any public deposit on a rate of interest exceeding twelve and a half percent per annum. Interest may be paid or compounded at rests which shall not be shorter than monthly rests.

 

(b) No housing finance company shall pay to any broker on public deposit collected by or through him,

 

(i) brokerage, commission, incentive or any other benefit by whatever name called in excess of two percent of the deposit so collected;

(ii) expenses by way of reimbursement on the basis or relative vouchers/bills produced by him, in excess of 0.5% of the deposit so collected.”

 

Sd/-

(Shekhar Agarwal)

Chairman & Managing Director