Master Directions for Mortgage Guarantee Companies
The Reserve Bank of India (RBI) has issued Master Directions for Mortgage Guarantee Companies (MGCs) to regulate their activities.
Applicability: These directions apply to all MGCs registered with the RBI.
Registration: MGCs must register with the RBI and comply with the registration requirements.
Activities: MGCs are permitted to engage in mortgage guarantee business and other activities as specified by the RBI.
Mortgage Guarantee: The essential features of a mortgage guarantee include a guarantee to the lender, a fee-based service, and a risk assessment process.
Funding Options: MGCs can raise funds through public deposits, external commercial borrowings, and other approved sources.
Prudential Regulations: MGCs must comply with prudential regulations, including capital requirements, asset classification, and provisioning.
Supervision: The RBI will supervise MGCs to ensure compliance with these directions.
Chat with the Master Direction: