Source: Reserve Bank of India · RBI/2024-25/11 · issued 02 Apr 2024 · ~1 min read
Quick answerRBI issued a revised Master Circular on Housing Finance, consolidating all instructions issued up to March 31, 2024. No new guidelines are introduced; it replaces the April 2023 circular and applies to all Scheduled Commercial Banks except RRBs.
What changed
The revised Master Circular updates the previous version dated April 3, 2023, to include all housing finance instructions issued up to March 31, 2024. It consolidates existing guidelines without adding any new directives or changes to policy.
What it means for you
Banks must ensure their housing finance policies align with the consolidated circular, which remains a statutory directive under the Banking Regulation Act, 1949. The circular reinforces existing norms on loan quantum, interest rates, disclosure, and priority sector lending, with no fresh compliance burden.
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
Review and update internal housing finance policies to reflect the consolidated circular.
Ensure all staff are aware that no new instructions are introduced; existing guidelines remain unchanged.
Maintain compliance with statutory requirements under Sections 21 and 35A of the Banking Regulation Act, 1949.
Verify that loan documentation includes borrower declarations for plot purchase and construction timelines.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Housing finance departments and credit officers, Compliance and risk management teams
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/11
DOR.CRE.REC.No.07/08.12.001/2024-25
April 02, 2024
All Scheduled Commercial Banks (excluding RRBs)
Dear Sir/Madam,
Master Circular – Housing Finance
Please refer to the Master Circular DOR.CRE.REC.No.06/08.12.001/2023-24 dated April 03, 2023 consolidating the instructions / guidelines issued to banks till March 31, 2023 relating to Housing Finance. Attached is the revised Master Circular , updated to reflect all instructions issued upto March 31, 2024 on the above matter, as listed in the Appendix . It may be noted that this Master Circular only consolidates all instructions on the above matter issued up to March 31, 2024 and does not contain any new instructions/guidelines.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager
Encl: as above
CONTENTS
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/11 · issued 02 Apr 2024. 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=12656&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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