Change in Frequency of Principal Business Criteria (PBC) for HFCs
In Line with the provisions mentioned under RBI’s notification (DOR.NBFC (HFC).CC.No.118/03.10.136/2020-21) on the regulatory framework for Housing Finance Companies, all HFCs must meet the following conditions as principal business criteria to operate as an HFC in India.
- The majority of Financial Assets to be in Housing Finance
At least 60% of the company’s total assets (net of intangible assets) should be dedicated to providing finance for housing.
- Major Housing Finance for Individuals
Out of these total assets (netted off by intangible assets), a minimum of 50% should be by way of housing finance for individuals.
In India, Principal business criteria (PBC) for housing finance companies (HFCs) are regulatory norms set by the Reserve Bank of India (RBI). This is to determine whether a company is eligible to operate as an HFC and ensure that these entities primarily focus on housing finance activities.
On 29th October 2024, the National Housing Bank through an email communication issued an advisory revising the reporting frequency of Principal Business Criteria (PBC) Compliance.
This Revised Provision is applicable w.e.f., 1st November 2024
|
Particulars |
Old Provision |
New Provision |
| HFCs to submit the Principal Business Criteria Data | Quarterly | Monthly (by the 15th of the following Month) |
The change in the PBC Reporting has been introduced to enhance the monitoring of PBC criteria in alignment with regulatory requirements. All HFCs are now required to submit their PBC compliance data monthly by the 15th of the following Month, instead of earlier quarterly submissions.
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