Notification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

August 25, 2021

All Housing Finance Companies (HFCs)
Dear Sir/ Madam,

Please refer to Para 105 of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 wherein certain criteria have been prescribed for notification of HFCs as ‘Financial Institution’ under Section 2(1)(m)(iv) of the SARFAESI Act.

2. In this connection, Government of India (GoI) has, vide its Gazette Notification No. S.O. 2405(E) dated June 17, 2021 notified the HFCs registered under Section 29A(5) of National Housing Bank Act, 1987 and having assets worth ₹100 crore & above, as ‘Financial Institution’ under Section 2(1)(m)(iv) of SARFAESI Act, 2002. In view of revision of the criteria for notification as ‘Financial Institution’ as per the above mentioned Gazette notification of GoI, the criteria prescribed under Para 105 of the aforesaid Master Direction are withdrawn with immediate effect.

3. The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is being modified accordingly.

Yours faithfully,

(J.P. Sharma)
Chief General ManagerNotification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (SARFAESI Act)

For full detail click the link below :

https://www.dropbox.com/s/k5hkhidmiawwndf/Notification%20as%20%E2%80%98Financial%20Institution%E2%80%99%20under%20Section%202%281%29%28m%29%28iv%29%20of%20Securitisation.PDF?dl=0