Keep more money in your purse, NHB tells housing finance companies

Within the housing finance sector, the NHB has a dual role

The housing sector regulator, National Housing Bank (NHB), could stay with its current governing structure for some more time as the government seeks to tighten the supervision of the sector. Roiled by the experience of IL&FS and other leading non-banking financial companies (NBFCs), the government wants to keep a close eye on the housing sector to check for any slippage.

The NHB has asked housing finance companies to maintain more money in their purse. It also decided to scrap a plan floated in 2017 to extend the 90-day NPA classification window for the sector.

The institution has been taken over by the