It is well recognised that NBFCs play a prominent role in the Indian financial system by catering to financial needs of a wide variety of customers and niche sectors, providing complementarity and competition to banks. The NBFC sector largely depends on market and bank borrowings, thereby creating a web of inter-linkages with banks and financial markets.
As Housing Finance Companies (HFCs) now fall under the regulatory purview of the Reserve Bank, we are undertaking a review of extant regulations and are in the process of harmonising these regulations for HFCs with applicable regulations for NBFCs. 15.