National Housing Bank

(Wholly Owned by the Reserve Bank of India)

New Delhi

 

 

HOUSING FINANCE COMPANIES (NHB) DIRECTIONS, 2001

 

Direction No. NHB.HFC.DIR. 15/CMD/2005 dated December 19, 2005

 

The National Housing Bank having considered it necessary in the public interest and being satisfied that, for the purpose of enabling the National Housing Bank to regulate the housing finance system in the country to its advantage, it is necessary so to do, hereby in exercise of the powers conferred on it by sections 30A and 31 of the National Housing Bank Act, 1987 (53 of 1987) and all the powers enabling it in this behalf, directs that the Housing Finance Companies (NHB) Directions, 2001 shall with immediate effect, be further amended in the following manner, namely:-

 

In chapter V- Miscellaneous, after paragraph 43, of the Housing Finance Companies (NHB) Directions, 2001 a new paragraph shall be inserted as 44, viz.

“44. HFCs should ensure that at all times there is full cover available for public deposits accepted by them. While calculating this cover the value of all debentures (secured and unsecured) and outside liabilities other than the aggregate liabilities to depositors may be deducted from the total assets. Further, the assets should be evaluated at their book value or realizable/market value whichever is lower for this purpose.”

Sd/-

P.K Gupta

Chairman & Managing Director