A.P. (DIR Series) Circular No. 113
June 24, 2013
All Authorised Dealer Category –I Banks
Madam / Sir
External Commercial Borrowings (ECB) for the low cost affordable housing projects
Attention of Authorized Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No. 61 dated December 17, 2012 on the captioned subject in terms of which ECB for low cost affordable housing projects is allowed as a permissible end-use under the approval route.
2. The policy regarding ECB for the low cost affordable housing projects has been reviewed and it has been decided to modify the guidelines contained in the aforesaid A.P. (DIR Series) Circular as under:
3. Issue of fixation of spread for on-lending by National Housing bank (NHB):
Interest rate spread to be charged by National Housing Bank (NHB) may be decided by NHB taking into account cost and other relevant factors. NHB shall ensure that interest rate spread for HFCs for on-lending to prospective owners’ of individual units under the low cost affordable housing scheme is reasonable.
4. Housing Finance Companies (HFCs) while making the applications, shall
5. All other aspects of the scheme mentioned in the aforesaid A.P. (DIR Series) Circular would remain unchanged. Authorised Dealers may bring the contents of this Circular to the notice of their constituents and customers.
6. The directions contained in this circular have been issued under Section 10 (4) and Section 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
(Rudra Narayan Kar)
Chief General Manager in-Charge