Current · Source: Reserve Bank of India · RBI/2026-27/124 · issued 15 Jun 2026 · ~1 min read
Quick answerRBI updates advertising and sales rules for housing finance companies, effective January 1, 2027.
The rule, in the simplest words
Starting January 1, 2027, housing finance companies (HFCs) must follow new rules for ads and sales that are fair and clear to customers.
These rules come from the RBI's 'Responsible Business Conduct' directions, which apply to most non-banking financial companies (NBFCs) except a few like core investment companies.
HFCs must delete their old advertising rules and replace them with the new ones from the RBI's Responsible Business Conduct directions.
The goal is to make sure HFCs are honest and transparent when they sell loans or other products, so customers can trust them.
How it plays out — a real example
An NBFC compliance officer in Indore, Priya, is updating her HFC's brochures and website ads before the January 1, 2027 deadline. She checks that every ad clearly explains the interest rate and fees in simple language, just like the new RBI rules require, so her customers can easily understand what they're signing up for.
What changed
The Reserve Bank of India has amended the Housing Finance Companies Directions, 2025, to update rules on advertising, marketing, and sales, aligning with the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025, which will apply to all Non-Banking Financial Companies (NBFCs), including HFCs, but excluding Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, and NBFCs not having any customer interface.
What it means for you
The amendments aim to promote responsible business conduct among housing finance companies. The changes will impact how HFCs advertise and sell financial products, ensuring transparency and fairness in their dealings with customers. This will help maintain trust and confidence in the housing finance sector.
What you must do
Review the amended directions
Update advertising and sales practices
Ensure compliance with new provisions by January 1, 2027
Who it affects
Housing Finance Companies, Non-Banking Financial Companies, Customers of HFCs
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What are the key changes in the amended directions?
The amended directions update rules on advertising, marketing, and sales for housing finance companies.
When will the changes be effective?
The changes will be effective from January 1, 2027.
Who will be impacted by the amendments?
Housing finance companies, non-banking financial companies, and their customers will be impacted by the amendments.
📜 Read the original circular — full text as issued by RBI
RBI/2026-27/124
DOR.MCS.REC.No.103/01-01-039/2026-27
June 15, 2026
Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026
Reserve Bank had earlier issued instructions on ‘Advertising, Marketing and Sales’ to Housing Finance Companies (HFCs) under Chapter-X on ‘Fair Practices Code’ in Reserve Bank of India (Housing Finance Companies) Directions, 2025 . The extant instructions have since been reviewed and it has been decided to issue comprehensive instructions on advertising, marketing and sale of financial products / services to all Non-Banking Financial Companies (NBFCs), including HFCs but excluding Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, and NBFCs not having any customer interface, under the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 .
2. In exercise of the powers conferred by Section 30A of the National Housing Bank Act,1987, the Reserve Bank, being satisfied that it is necessary and expedient in public interest so to do, hereby issues the Amendment Directions hereinafter specified.
3. Short Title and Commencement
(1) These Directions shall be called the Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026.
(2) These Directions shall come into effect on January 1, 2027 .
4. These Amendment Directions shall modify the Reserve Bank of India (Housing Finance Companies) Directions, 2025 as under:
(1) In Chapter-X on ‘Fair Practices Code’, the sub-sections A.10 Advertising, Marketing and Sales (paragraphs 150 to 154) and A.11 Code of Conduct for DSAs/DMAs (paragraphs 155 to 157) shall be deleted and substituted with a new sub-section as under:
“A.11A Advertising, Marketing and Sale of Financial Products / Services by HFCs
157A. An HFC shall ensure compliance with the provisions of paragraphs 101A to 101ZA under Chapter IIIA of Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 .”
(Veena Srivastava)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/124 · issued 15 Jun 2026. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Housing Finance Companies, Non-Banking Financial Companies, Customers of HFCs), your first concrete step on “RBI Amends HFC Directions” is: “Review the amended directions” (RBI issued this 15 Jun 2026).
Action required: Update advertising and sales practices
Action required: Ensure compliance with new provisions by January 1, 2027
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 01 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=13494&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.