RBI FINALISES NORMS FOR MORTGAGE GUARANTEE COMPANIES

The Reserve Bank of India has released the final guidelines for registration and operation of Mortgage Guarantee Companies (MGCs) in India. MGCs will be registered as Non-Deposit taking NBFCs and should have a minimum net-owned fund of Rs. 100 crores, which shall be reviewed for enhancement after three years. According to RBI regulations, the Foreign Direct Investment (FDI) to be eligible for investment in the equity of an MGC should have prior approval of the Foreign Investment Promotion Board (FIPB).