RBI's regulation to improve risk management, governance of HFCs: Experts

The Reserve Bank of India's (RBI) revised regulatory framework for the housing finance companies (HFCs) will help them improve risk management and governance and thus become financially sound to withstand market turbulence, according to experts.

The RBI, which has taken over the regulation of HFCs about a year ago, has come up with a revised regulatory framework for the HFCs. Among other things, the RBI has fixed the minimum net-owned fund (NOF) for commencing housing finance business at Rs 20 crore and specified a timeline for meeting the NOF by the existing HFCs with lesser capital.

"The guidelines also make HFCs equal