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Regulation
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In
terms of the National Housing Bank Act, 1987, National Housing
Bank is expected, in the public interest, to regulate the housing
finance system of the country to its advantage or to prevent
the affairs of any housing finance institution being conducted
in a manner detrimental to the interest of the depositors or
in a manner prejudicial to the interest of the housing finance
institutions. For this, National Housing Bank has been empowered
to determine the policy and give directions to the housing
finance institutions and their auditors.
Besides
the regulatory provisions of the National Housing Bank Act, 1987,
National Housing Bank has issued the Housing Finance Companies
(NHB) Directions, 2001 as also Guidelines for Asset Liability
Management System in Housing Finance Companies. These are periodically
updated through issue of circulars and notifications.
As
part of the supervisory process, an entry level regulation
is sought to be achieved through a system of registration
of housing finance companies.
National
Housing Bank supervises the sector through a system of on-site
and off-site surveillance.
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