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      Question

      The Reserve Bank of India (RBI) has introduced new

      guidelines for Housing Finance Companies (HFCs) to align their regulations with Non-Banking Financial Companies (NBFCs) starting January 1, 2025. Which of the following is not a part of these revised guidelines?
      A Increasing the minimum liquid asset requirements for HFCs from 13% to 14% of public deposits Correct Answer Incorrect Answer
      B Allowing HFCs to accept public deposits without an investment grade credit rating Correct Answer Incorrect Answer
      C Reducing the ceiling on public deposits for HFCs from 3 times to 1.5 times of net owned funds Correct Answer Incorrect Answer
      D Requiring HFCs to ensure full asset cover for public deposits and inform the National Housing Bank (NHB) if asset cover falls short Correct Answer Incorrect Answer
      E Mandating that public deposits must be repayable within 12 to 60 months Correct Answer Incorrect Answer

      Solution

      The new RBI guidelines require HFCs to have a minimum investment grade credit rating to accept or renew public deposits. If an HFC does not meet this rating, it cannot accept or renew deposits until compliance is achieved. Therefore, option B, which suggests allowing HFCs to accept public deposits without this rating, is incorrect.

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