Page 243 - NHB AR 2020-21-3 complete- Print (1)
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3.4 Supervision
The Bank supervises the HFCs as per provisions of the National Housing Bank Act, 1987. As
on June 30, 2021, the total number of registered Housing Finance Companies (HFCs) stood at
101, of which 17 HFCs have been granted Certificate of Registration (CoR) with permission
to accept public deposits and the balance 84 without permission to accept public deposits. Of
the 17 HFCs, with permission to accept public deposits, 6 are required to obtain prior written
permission from NHB before accepting any public deposits.
NHB’s supervision is aimed at preventing the affairs of any HFC being conducted in a manner
detrimental to the interest of the public and shall not be prejudicial to the operations and
the growth of the housing finance sector of the country. To ensure safety and soundness of
HFCs, NHB has a robust monitoring system which includes on-site inspections and off-site
surveillance of HFCs.
NHB supervises the functioning of HFCs through on-site inspections, market intelligence
and off-site surveillance mechanisms, through periodic returns / information and their
verification.
1) On-site Inspections
NHB conducted on-site inspections in respect of 51 registered HFCs during FY 2020-21,
to ascertain their compliances with various regulatory provisions of the NHB Act, 1987,
Directions, Guidelines, Circulars, etc. issued thereunder by NHB, from time to time.
Keeping in view the prevailing Pandemic, the supervisory inspections were carried
out through a combination of physical mode and digital mode. The inspecting officers
were advised to adhere to all the instructions of the Central/ State Government/ Local
Authorities, follow social distancing norms and other health protocols while carrying
out the inspections. The use of video conferencing and other electronic modes were also
advised to be extensively used for having discussion with the officials of the HFCs.
2) Off-site Surveillance
The Bank carries out off-site surveillance of HFCs by monitoring and scrutinizing
periodic returns submitted by HFCs including quarterly, half yearly and annual returns.
3) Penalties
To regulate the HFCs in an efficient manner, NHB also penalizes HFCs for (i) non-
maintenance of liquid assets (ii) non-submission of information/returns (ii) non-
compliance with the Directions applicable for HFCs. During the year, 38 Housing
Finance Companies were penalized for various non-compliances.
Annual Report 2020-21 | 223
The Bank supervises the HFCs as per provisions of the National Housing Bank Act, 1987. As
on June 30, 2021, the total number of registered Housing Finance Companies (HFCs) stood at
101, of which 17 HFCs have been granted Certificate of Registration (CoR) with permission
to accept public deposits and the balance 84 without permission to accept public deposits. Of
the 17 HFCs, with permission to accept public deposits, 6 are required to obtain prior written
permission from NHB before accepting any public deposits.
NHB’s supervision is aimed at preventing the affairs of any HFC being conducted in a manner
detrimental to the interest of the public and shall not be prejudicial to the operations and
the growth of the housing finance sector of the country. To ensure safety and soundness of
HFCs, NHB has a robust monitoring system which includes on-site inspections and off-site
surveillance of HFCs.
NHB supervises the functioning of HFCs through on-site inspections, market intelligence
and off-site surveillance mechanisms, through periodic returns / information and their
verification.
1) On-site Inspections
NHB conducted on-site inspections in respect of 51 registered HFCs during FY 2020-21,
to ascertain their compliances with various regulatory provisions of the NHB Act, 1987,
Directions, Guidelines, Circulars, etc. issued thereunder by NHB, from time to time.
Keeping in view the prevailing Pandemic, the supervisory inspections were carried
out through a combination of physical mode and digital mode. The inspecting officers
were advised to adhere to all the instructions of the Central/ State Government/ Local
Authorities, follow social distancing norms and other health protocols while carrying
out the inspections. The use of video conferencing and other electronic modes were also
advised to be extensively used for having discussion with the officials of the HFCs.
2) Off-site Surveillance
The Bank carries out off-site surveillance of HFCs by monitoring and scrutinizing
periodic returns submitted by HFCs including quarterly, half yearly and annual returns.
3) Penalties
To regulate the HFCs in an efficient manner, NHB also penalizes HFCs for (i) non-
maintenance of liquid assets (ii) non-submission of information/returns (ii) non-
compliance with the Directions applicable for HFCs. During the year, 38 Housing
Finance Companies were penalized for various non-compliances.
Annual Report 2020-21 | 223
