The Reserve Bank of India is now monitoring the liquidity position, asset-liability gap and repayment schedules of housing finance companies (HFCs) on a daily basis. This follows the liquidity crisis hit these firms, resulting in defaults. While HFCs are regulated by the National Housing Bank, the RBI is of the view that since the liquidity crisis affecting these entities could have a spillover effect on the other segments in the financial sector, including banks and it could affect financial stability, it was necessary to monitor these entities on a regular basis.RBI has asked a senior official of NHB to be in regular communication with a chief general manager in the department of non-banking supervision of the RBI. The move comes after some mortgage lenders started feeling the pressure to meet their financial obligations.
