The Reserve Bank of India ("RBI") vide notification dated November 11, 2019 revoked the exemptions earlier granted to Housing Finance Institutions ("HFIs") from complying with the Chapter IIIB of the RBI Act, 1934 ("RBI Act") with certain exceptions.
In accordance with the Notification, HFIs are now required to comply with the provisions of Chapter IIIB of the RBI Act except Section 45-IA of the RBI Act ( Requirement of re gistration and net owned fund ). However, the necessary notification withdrawing such exemptions will be issued by the RBI, separately.
DSK Legal's Observations : Now, with the revocation of the exemptions, HFIs will be subject to stricter RBI supervision and control at par with other NBFCs in India.
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