The Reserve Bank of India amended its Housing Finance Companies Directions to bring housing finance companies under the comprehensive conduct standards for recovering loan dues and engaging recovery agents set out in the Non-Banking Financial Companies – Responsible Business Conduct Directions, 2025. The change takes effect Jan. 1, 2027, aligning HFC recovery practices with the broader framework issued for customer-facing nonbank financial companies. The amendment replaces the existing recovery-agent guidelines in the HFC Fair Practices Code with a requirement to comply with paragraphs 100A to 100AB of the responsible business conduct directions. The broader framework excludes mortgage guarantee companies, core investment companies, account aggregators, standalone primary dealers, non-operating financial holding companies and NBFCs without a customer interface.
2026-08-06Reserve Bank of India
Reserve Bank of India aligns housing finance company loan recovery rules with broader NBFC conduct standards from January 2027
The Reserve Bank of India aligned housing finance company requirements for loan recovery and recovery agents with its broader conduct standards for non-banking financial companies. The revised requirements take effect on January 1, 2027.