What changed
The revised Master Circular replaces the April 2024 version, incorporating all housing finance instructions issued up to March 31, 2025. It consolidates existing guidelines without adding any new directives. The annex lists the circulars that have been updated.
What it means for you
Banks can rely on this circular as a single, updated source for housing finance regulations, reducing the need to track multiple circulars. Compliance requirements remain unchanged, but lenders must ensure their internal policies align with the consolidated instructions. This simplifies audit and regulatory reporting processes.
What you must do
- Replace the April 2024 Master Circular with this updated version in your compliance manuals.
- Review your housing finance policies to ensure they match the consolidated instructions listed in the annex.
- Train credit and operations teams on the updated circular, emphasizing that no new rules have been added.
- Update internal checklists and audit procedures to reference this circular for all housing loan approvals.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Housing finance departments, Credit risk and compliance teams, Internal audit and regulatory reporting units
Does this Master Circular introduce any new housing finance rules?
No. It only consolidates all instructions issued up to March 31, 2025, without adding new guidelines.
Which banks are covered under this circular?
All Scheduled Commercial Banks except Regional Rural Banks (RRBs) are required to follow this circular.
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.