What changed
The revised Master Circular updates the previous version dated April 3, 2023, to include all housing finance instructions issued up to March 31, 2024. It consolidates existing guidelines without adding any new directives or changes to policy.
What it means for you
Banks must ensure their housing finance policies align with the consolidated circular, which remains a statutory directive under the Banking Regulation Act, 1949. The circular reinforces existing norms on loan quantum, interest rates, disclosure, and priority sector lending, with no fresh compliance burden.
What you must do
- Review and update internal housing finance policies to reflect the consolidated circular.
- Ensure all staff are aware that no new instructions are introduced; existing guidelines remain unchanged.
- Maintain compliance with statutory requirements under Sections 21 and 35A of the Banking Regulation Act, 1949.
- Verify that loan documentation includes borrower declarations for plot purchase and construction timelines.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Housing finance departments and credit officers, Compliance and risk management teams
Does this Master Circular introduce any new housing finance rules?
No, it only consolidates all instructions issued up to March 31, 2024, without adding new guidelines.
Which banks are covered under this circular?
All Scheduled Commercial Banks except Regional Rural Banks (RRBs) must comply.
What is the legal basis for this circular?
It is a statutory directive issued under Sections 21 and 35A of the Banking Regulation Act, 1949.