RBI as housing finance regulator

In the long run, the integration of regulations between banks and HFCs will prove beneficial for the industry and borrowers

Most of the discussion around the Union Budget has happened around the hike in surcharge for the ultra high networth individuals and foreign portfolio investors. I am writing about a much less noticed and talked about item – moving the regulatory baton for housing finance companies (HFCs) from National Housing bank (NHB) to the Reserve Bank of India (RBI).
 
NHB as a separate regulator for HFCs was never really a good idea. It doubled up as a financier to the HFCs as well as was their regulator – which is a clear conflict of interest. Secondly, NHB just did