 "RBI draft guidelines will strengthen HFCs, safeguard investor interest")
The Reserve Bank of India’s (RBI’s) new rules for housing finance companies (HFCs) would help strengthen the lenders and safeguard investor interest, say experts. This was needed, they say, especially after the crisis at Dewan Housing Finance Corporation, which had spooked investors.
The proposed rules would also bring clarity to the structure of non-banking housing lenders, but are unlikely to have a material impact on HFCs’ financials since most already meet the criteria.
Among the draft guidelines announced on Wednesday, the central bank has proposed to clearly define "housing finance". The term which would now mean “financing, for purchase/ construction/ reconstruction/ renovation/
