The Reserve Bank of India has issued the Reserve Bank of India (Housing Finance Companies) Amendment Directions, 2026, effective immediately, amending the Reserve Bank of India (Housing Finance Companies) Directions, 2025 to clarify the components considered in the computation of “Owned Fund” for Housing Finance Companies (HFCs). The amendment allows free reserves to include quarterly profits, subject to quarterly financial statements being subjected to limited review/audit by statutory auditors, and such profits being adjusted for the average dividend paid over the last three financial years using the prescribed formula. Additionally, losses in the current financial year must be fully deducted from Owned Fund. The directions also clarify that Right-of-Use (ROU) assets created under Ind AS 116 – Leases need not be deducted from Owned Fund where the underlying leased asset is a tangible asset.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13313&Mode=0
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