The Reserve Bank of India has issued the Reserve Bank of India (Housing Finance Companies) Directions, 2025 to comprehensively regulate the functioning of Housing Finance Companies (HFCs) in the public interest. Issued under the RBI Act, 1934 and the National Housing Bank Act, 1987, the Directions aim to ensure that HFCs conduct their affairs in a manner that safeguards the interests of investors and depositors and does not prejudice financial stability. The Directions apply to all HFCs registered under Section 29A of the NHB Act, except for specific provisions carved out in Chapter IX. Notably, Chapter IX is made applicable to auditors of HFCs, thereby strengthening accountability and oversight of financial reporting and compliance. The Directions come into force on the date they are placed on the RBI’s website and form part of the RBI’s broader framework to align HFC regulation with prudential norms and effective supervision.
RESERVE BANK OF INDIA
RBI/DoR/2025-26/365
DoR.FIN.REC.284/03-10-119/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Housing Finance Companies) Directions, 2025
In exercise of the powers conferred under sections 45L and 45MA of the Reserve Bank of India Act, 1934 and Sections 30, 30A, 32 and 33 of the National Housing Bank Act, 1987, and of all powers enabling it in this behalf, the Reserve Bank having considered it necessary in the public interest, and being satisfied that, for the purpose of enabling the Reserve Bank to regulate the financial system to the advantage of the country so to do, and to prevent the affairs of any Housing Finance Company (HFC) from being conducted in a manner detrimental to the interest of investors and depositors or in any manner prejudicial to the interest of such HFC, hereby issues to every HFC, the Reserve Bank of India (Housing Finance Companies) Directions, 2025 hereinafter specified.
Chapter-I – Preliminary
A. Short Title and Commencement
1. These directions shall be called the Reserve Bank of India (Housing Finance Companies) Directions, 2025.
2. These directions shall come into effect on the day they are placed on the website of the Reserve Bank.
B. Applicability
3. These Directions, except directions contained in Chapter IX, shall be applicable to Housing Finance Companies (hereinafter collectively referred to as ‘HFCs’ and individually as an ‘HFC’) registered under Section 29A of the NHB Act, 1987.
4. The Directions contained in Chapter IX shall be applicable to auditors of HFCs.
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/365MD8214102C853241B98E06B2123AB42657.PDF
