Resource detail

The National Housing Bank had issued Housing Finance Companies (NHB) Directions, 2001 in respect of matters relating to acceptance of deposits by housing finance companies, prudential norms for income recognition, accounting standards, asset classification, provision for bad and doubtful assets, capital adequacy and concentration of credit/ investments to be observed by the housing finance companies. Several amendments were made to these Directions from time to time and hence this consolidated Directions was issued in 2010. The restrictions on acceptance of deposits are detailed in Chapter II. It says no housing finance company shall accept or renew public deposits unless it has obtained minimum investment grade rating for its fixed deposits from any one of the approved rating agencies, at least once a year and a copy of the rating is sent to the National Housing Bank and it is complying with all the prudential norms, which are explained in Chapter III. Chapter IV gives the details to be included in the auditor's report.