What changed
This master circular updates the previous July 2012 version by incorporating all housing finance-related instructions issued up to June 30, 2013. It consolidates the entire regulatory framework into one document for easier reference.
What it means for you
Banks must now refer to this single master circular for all housing finance guidelines, ensuring compliance with the latest RBI directives. The circular reinforces the focus on orderly growth of housing loan portfolios and alignment with the National Housing Policy.
What you must do
- Review and replace the July 2012 master circular with this updated version for all housing finance operations.
- Ensure housing loan policies comply with the consolidated instructions on LTV ratios, risk weights, and priority sector classification.
- Update internal training materials and compliance checklists to reflect the latest circular.
- Monitor real estate exposure limits and reporting requirements as per the circular.
Who it affects
All scheduled commercial banks (excluding RRBs), Housing finance departments, Risk management and compliance teams, Priority sector lending teams
Does this master circular apply to Regional Rural Banks?
No, the circular explicitly excludes Regional Rural Banks (RRBs) from its scope.
What is the legal basis for this circular?
It is a statutory directive issued under Sections 21 and 35A of the Banking Regulation Act, 1949.
Does this circular introduce new housing finance rules?
No, it consolidates and updates existing instructions issued up to June 30, 2013, without introducing new regulations.