Regulatory Framework for Mortgage Guarantee Company (MGC) - আরবিআই - Reserve Bank of India
Regulatory Framework for Mortgage Guarantee Company (MGC)
It may be recalled that while announcing proposals for the Union budget 2007-08, the Finance Minister of India announced: 'Our people want housing loans. Banks and housing finance companies that lend against mortgages would have greater comfort if the mortgage can be guaranteed through a three way contract among borrower, lender and guarantor. Regulations will be put in place to allow the creation of mortgage guarantee companies'. Accordingly, the Bank had framed and placed draft Guidelines on Registration and Operations of Mortgage Guarantee Company on the web-site www.rbi.org.in on April 2, 2007 vide DNBS No. 6625 /03.11.01/2006-07 for comments/suggestion from public/stakeholders. The major suggestions received were regarding the minimum capital requirement, capital adequacy ratio, trigger point for acquisition of non-performing assets by mortgage guarantee company, prescription regarding tripartite agreement between MGC, creditor institution and the borrower to be replaced by bilateral agreement. The suggestions were examined with due regard to their import and accordingly certain modifications have been made:
In continuation of our stance of consultative approach, the modified guidelines are being placed on the Reserve Bank's website (www.rbi.org.in) for study by a wider audience as a Draft. Comments/suggestions may please be sent by email at the earliest but within 7 days of the publication of the modified guidelines for consideration of the Reserve Bank. Alpana Killawala Press Release: 2007-2008/969 |