Soon, housing finance companies (HFC) are likely to come under the regulatory jurisdiction of the Reserve Bank of India, reported Business Standard, citing sources.

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The sources, however, added that though the regulatory powers may be shifted to the central bank from the National Housing Board, the latter will continue to supervise the firms.

The move comes at a time when most of the country’s 82 HFCs are experiencing a slowdown or facing a liquidity crunch.

However, this may not be the only big change that the government is considering. The centre, the report said, is planning to amend the Banking Regulation (BR) Act to give more powers to the RBI. The apex bank, the report said, may also be given powers that will enable it to change the management and boards of non-banking financial companies (NBFCs) as in the case with private banks.

The new changes are likely to be announced by finance minister Nirmala Sitharaman in the upcoming Budget.

First Published:Jul 3, 2019 9:47 AM IST