Home > Practice > Current Affairs > August - 2024 > August 13, 2024
1. What is the new liquid asset ratio requirement for Housing Finance Companies (HFCs) as per the RBI's tightened regulations?
The RBI has mandated that Housing Finance Companies (HFCs) maintain a liquid asset ratio of 15% of public deposits, aligning with similar requirements for Non-Banking Financial Companies (NBFCs). This change is designed to enhance the financial stability of HFCs by ensuring they have sufficient liquidity to meet their obligations. The requirement will be phased in, starting with 14% by January 1, 2025, and reaching 15% by July 2025.