What changed
RBI issued a consolidated version of the Mortgage Guarantee Companies Investment (Reserve Bank) Directions, 2008, incorporating amendments up to June 30, 2012. The updated notification reproduces the earlier version dated February 15, 2008, and is now available on the RBI website.
What it means for you
Mortgage guarantee companies must adhere to the updated investment directions, which include definitions for fair value, carrying cost, and NPA classification (90-day overdue). The circular ensures all current instructions are in one place, reducing ambiguity for compliance.
What you must do
- Review the updated Investment Directions 2008 for any changes in definitions or prudential norms.
- Ensure your investment portfolio complies with the fair value and carrying cost calculations as defined.
- Update internal policies to align with the 90-day NPA classification for investments.
- Maintain records of compliance with the updated circular for regulatory inspections.
Who it affects
All Mortgage Guarantee Companies registered with RBI, Compliance officers of mortgage guarantee companies, Auditors reviewing investment portfolios of MGCs
What is the effective date of these updated directions?
The directions were originally effective from February 15, 2008, and the circular consolidates amendments up to June 30, 2012.