
Reserve Bank issues rules for HFCs
The Hindu
The RBI on Wednesday issued directives to housing finance companies (HFCs) on maintenance of liquidity coverage ratio, risk management, asset classification and loan-to-value ratio. It said the directions, took immediate effect and were aimed at protecting the interests of investors and depositors.
“All non-deposit taking HFCs with asset size of ₹100 crore and above and all deposit taking HFCs shall pursue liquidity risk management, [adhering] to gap limits, making use of liquidity risk monitoring tools and adoption of stock approach to liquidity risk.”
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