Source: Reserve Bank of India · RBI/2021-22/171 · issued 18 Feb 2022 · ~1 min read
Quick answerRBI consolidated all housing finance guidelines for scheduled commercial banks (excluding RRBs) into one master circular, covering loan purposes, interest rates, disclosures, and priority sector norms. No new rules were introduced; this is a compilation of instructions issued up to February 17, 2022.
What changed
This master circular replaces the July 1, 2015 version and consolidates all housing finance instructions issued up to February 17, 2022. It does not introduce new regulations but updates the reference framework for banks.
What it means for you
Banks must now refer to this single document for all housing finance guidelines, ensuring compliance with updated consolidated instructions. The circular reinforces existing rules on loan purposes, such as restrictions on speculative real estate use and requirements for sanctioned building plans.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Replace the 2015 master circular with this updated version in your internal policy documents.
Ensure housing loan processes align with consolidated guidelines, including obtaining sanctioned building plans and borrower declarations for plot purchases.
Review disclosure requirements and priority sector lending norms for housing finance as per this circular.
Train credit and compliance teams on the updated consolidated framework.
Who it affects
All scheduled commercial banks (excluding RRBs), Housing finance departments, Credit risk and compliance teams, Priority sector lending units
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this master circular introduce new housing loan rules?
No, it consolidates existing instructions issued up to February 17, 2022, without adding new regulations.
Which banks are covered under this circular?
All scheduled commercial banks except Regional Rural Banks (RRBs).
What key conditions must banks check before sanctioning a home loan for construction?
Banks must obtain a copy of the sanctioned building plan in the applicant's name and an affidavit-cum-undertaking that construction will follow the plan.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
📜 Read the original circular — full text as issued by RBI
RBI/2021-22/171
DOR.CRE.REC.No.87/08.12.001/2021-22
February 18, 2022
All Scheduled Commercial Banks (excluding RRBs)
Dear Sir/Madam,
Master Circular – Housing Finance
Please refer to the Master Circular DBR.No.DIR.BC.13/08.12.001/2015-16 dated July 1, 2015 consolidating the instructions / guidelines issued to banks till June 30, 2015 relating to Housing Finance. This Master Circular consolidates instructions on the above matter issued up to February 17, 2022.
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager
CONTENTS
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/171 · issued 18 Feb 2022. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12243&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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