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RBI05 Aug 2026notificationPrepared by Complied AI

Reserve Bank of India (Housing Finance Companies) Third Amendment Directions, 2026

The Reserve Bank of India has amended the Housing Finance Companies (HFCs) Directions, 2025, to update requirements regarding the engagement of recovery agents and conduct in loan recovery. The existing guidelines under Chapter-X, specifically sub-section A.15 and paragraph 170, are deleted and replaced with a new sub-section A.15A. Under this amendment, HFCs are required to comply with the provisions set out in paragraphs 100A to 100AB of the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. These changes align the recovery conduct standards for HFCs with those applicable to other non-banking financial companies. The amendments are effective from January 1, 2027.

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What changed

The Reserve Bank of India has amended the Housing Finance Companies (HFCs) Directions, 2025, to update requirements regarding the engagement of recovery agents and conduct in loan recovery. The existing guidelines under Chapter-X, specifically sub-section A.15 and paragraph 170, are deleted and replaced with a new sub-section A.15A. Under this amendment, HFCs are required to comply with the provisions set out in paragraphs 100A to 100AB of the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. These changes align the recovery conduct standards for HFCs with those applicable to other non-banking financial companies. The amendments are effective from January 1, 2027.

Who is affected
  • Housing Finance Companies (HFCs)
Required action
  • HFCs must comply with the provisions of paragraphs 100A to 100AB of the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025.
Key dates
  • Commencement date — 31 Dec 2026

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Source details

Source
Reserve Bank of India
Type
notification
Published by source
05 Aug 2026
Document number
RBI/2026-2027/231
Effective date
31 Dec 2026
Coverage area
banking

Document text

Prepared for reading; wording retained from the source.

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RBI/2026-2027/231 DOR.MCS.REC.No.201/01-01-039/2026-27 August 6, 2026

Reserve Bank of India (Housing Finance Companies) Third Amendment Directions, 2026

Certain instructions on matters related to engagement of recovery agents by Housing Finance Companies (HFCs) have been issued to HFCs under Chapter-X on ‘Fair Practices Code’ of the Reserve Bank of India (Housing Finance Companies) Directions, 2025. The extant instructions have since been reviewed and it has been decided to issue comprehensive instructions on conduct related matters in recovery of loan dues and engagement of recovery agencies to all NBFCs, excluding Mortgage Guarantee Companies, Core Investment Companies, NBFC-Account Aggregators, Standalone Primary Dealers, Non-Operating Financial Holding Companies, and NBFCs not having any customer interface, under the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025.

  1. In exercise of the powers conferred by Section 30A of the National Housing Bank Act,1987, the Reserve Bank, being satisfied that it is necessary and expedient in public interest so to do, hereby issues the Amendment Directions hereinafter specified.

  2. Short Title and Commencement

(1) These Directions shall be called the Reserve Bank of India (Housing Finance Companies) Third Amendment Directions, 2026.

(2) These Directions shall come into effect from January 1, 2027.

  1. These Amendment Directions shall modify the Reserve Bank of India (Housing Finance Companies) Directions, 2025 as under:

In Chapter-X on ‘Fair Practices Code’, the sub-section A.15 Guidelines for engaging Recovery Agents and paragraph 170 thereunder shall be deleted and substituted with a new sub-section and paragraph as under:

“A.15A Conduct of HFCs in Recovery of Loan Dues and Engagement of Recovery Agents

170A. An HFC shall ensure compliance with the provisions of paragraphs 100A to 100AB under Chapter III of Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025.”

(Veena Srivastava) Chief General Manager

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