NHB-Backed RDCL receives Certificate of Registration from RBI to commence Operations
As part of its key business activities, the Company will invest in RMBS issuances, extend second loss credit enhancements, support liquidity, promote standard processes and documentation, and other related activities for market development.
NHB-Backed RDCL receives Certificate of Registration from RBI to commence Operations
RMBS Development Company Limited (RDCL) has now received a Certificate of Registration (CoR) from the Reserve Bank of India(RBI) to commence operations, on January 23, 2025. National Housing Bank (NHB), a statutory body under the Government of India has set up RMBS Development Company Limited (RDCL) as the single largest shareholder and is supported by a strong mix of investor classes across Banks, HFC/ NBFC and Insurance companies.
The Company is envisioned to play the role of a commercially sustainable market intermediary to facilitate the growth and development of the Residential Mortgage-Backed Securitisation (RMBS) market in the country.
The operationalization of the Company will provide investment avenues to long-term institutional investors viz., Insurance Companies, Pension and Provident Funds in the RMBS market. The diverse set of investors shall instill confidence in the ecosystem and bring valuable experience in RMBS market development.
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As part of its key business activities, the Company will invest in RMBS issuances, extend second loss credit enhancements, support liquidity, promote standard processes and documentation, and other related activities for market development.
A well-developed RMBS market can emerge as a reliable complement to existing sources of funding and liquidity for Primary Lending Institutions. During the last 5 years, individual housing loans outstanding have grown from Rs 17.95 Lakh Crore as of March 31, 2019, to Rs 33.19 Lakh Crore as of 31st March 2024 with a CAGR of 13.1% and this growth is expected to continue.
The paid-up Capital of the Company is Rs 500 crore with its Registered Office in Mumbai. The Company is expected to commence operations in March 2025.
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