Question

Under the revised review of regulatory framework for

Q: Answer-Under the revised review of regulatory framework for Housing finance company (HFCs), by January 2025...

By January 2025, under the revised Master Direction Non-Banking Financial Company Housing Finance Company Reserve Bank Directions, 2021, deposit-taking HFCs are required to maintain 14 of their total public deposits in liquid assets, as part of the phased regulatory changes. This will increase to 15 by July 2025.

Housing finance company (HFCs), by January 2025, what percentage of total public deposits must deposit-taking HFCs maintain in liquid assets? Read the following passage and answer the following question. Housing Finance Companies (HFCs) and Non-Banking Financial Companies (NBFCs) have seen significant regulatory changes over the past decade. Following the transfer of HFC regulation from the National Housing Bank (NHB) to the Reserve Bank of India (RBI) in 2019, the regulatory landscape has focused on aligning HFCs with the broader NBFC regulatory framework. Recent changes include tighter liquidity management rules, new norms for deposit-taking entities, and restrictions on exposure to capital markets. These reforms aim to enhance financial stability and ensure that both HFCs and NBFCs adhere to similar prudential standards. In particular, deposit-taking HFCs are now required to maintain a higher proportion of liquid assets and adhere to stricter credit rating criteria. Additionally, HFCs involved in public deposit acceptance are mandated to implement more stringent controls around asset cover and deposit ceiling limits.

A 10%

B 12.5%

C 14%

D 15%

E 17.5%

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Under the revised review of regulatory framework for

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