NATIONAL HOUSING BANK
(Wholly owned by the Reserve Bank of India )
THE HOUSING FINANCE COMPANIES (NHB) DIRECTIONS, 2001
No. NHB.HFC.DIR.5/CMD/2003 New Delhi , the 27 th March 2003
In exercise of the powers conferred by sections 30A and 31 of the National Housing Bank Act, 1987 (53 of 1987) and all the powers enabling it in this behalf, the National Housing Bank being satisfied that it is necessary in the public interest so to do, hereby directs that the existing sub-paragraph (1) of Paragraph 11 of the Housing Finance Companies (NHB) Directions, 2001 shall, with immediate effect be substituted by the following, namely:-
1(a) On and from 27 th March, 2003, no housing finance company shall invite or accept or renew any public deposit at a rate of interest exceeding eleven percent per annum. Interest may be paid or compounded at rests which shall not be shorter than monthly rests.
(b) No housing finance company shall pay to any broker on public deposit collected by or through him,
(i) brokerage, commission, incentive or any other benefit by whatever name called in excess of two percent of the deposit so cancelled;
(ii) expenses by way of reimbursement on the basis or relative vouchers/bills produced by him, in excess of 0.5% of the deposit so cancelled.
Chairman & Managing Director