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RBI proposes new rules for housing finance companies

RBI on Wednesday proposed to tighten the rules governing home financiers, including putting restrictions on lending to builders and doubling the minimum net owned funds criterion. The regulator’s proposal has also clearly defined home finance firms and those that are systemically important among them.

RBI has also proposed that home financiers should not be simultaneously allowed to lend to a real estate developer as well as homebuyers in the developer’s project.