28. Definition of deposit.—In this Chapter the term ‘deposit’ shall have the meaning assigned to it in
section 451 of the Reserve Bank of India Act, 1934 (2 of 1934).
29. Chapter not to apply in certain cases.—(1) The provisions of this Chapter shall not apply to
deposits accepted by a housing finance institution which is a firm or an unincorporated association of
individuals.
(2) For the removal of doubts, it is hereby declared that the firms and unincorporated associations of
individuals referred to in sub-section (1) shall continue to be governed by the provisions of Chapter IIIC
of the Reserve Bank of India Act, 1934 (2 of 1934).
3
[29A. Requirement of registration and net owned fund—4
[(1) Notwithstanding anything
contained in this Chapter or in any other law for the time being in force, no housing finance institution
1. Subs. by Act 15 of 2000, s. 12, for “housing finance institution” (w.e.f. 12-6-2000).
2. Subs. by Act 23 of 2019, s. 153, for the heading (w.e.f. 9-8-2019).
3. Ins. by Act 15 of 2000, s. 13 (w.e.f. 12-6-2000).
4. Subs. by Act 23 of 2019, s. 154, for sub-sections (1) and (2) (w.e.f. 9-8-2019).
14
which is a company shall commence housing finance as its principal business or carry on the business of
housing finance as its principal business without—
(a) obtaining a certificate of registration issued under this Chapter; and
(b) having the net owned fund of ten crore rupees or such other higher amount, as the Reserve
Bank may, by notification, specify.
(2) Every housing finance institution which is a company shall make an application for registration to
the Reserve Bank in such form as may be specified by the Reserve Bank:
Provided that an application made by a housing finance institution which is a company to the
National Housing Bank and pending for consideration with the National Housing Bank as on the date of
commencement of the provisions of Part VII of Chapter VI of the Finance (No. 2) Act, 2019, shall stand
transferred to the Reserve Bank and thereupon the application shall be deemed to have been made under
the provisions of this sub-section and shall be dealt with accordingly:
Provided further that the provisions of this sub-section shall not apply to the housing finance
institution which is a company and having a valid registration certificate granted under sub-section (5) on
the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019,
and such housing finance institution shall be deemed to have been granted a certificate of registration
under the provision of this Act.]
1* * * * *
(4) The 2
[Reserve Bank], for the purpose of considering the application for registration, may require
to be satisfied by an inspection of the books of such housing finance institution or otherwise that the
following conditions are fulfilled:—
(a) that housing finance institution is or shall be in a position to pay its present or future
depositors in full as and when their claims accrue;
(b) that the affairs of the housing finance institution are not being or are not likely to be
conducted in a manner detrimental to the interest of its present or future depositors;
(c) that the general character of the management or the proposed management of the housing
finance institution shall not be prejudicial to the public interest or the interests of its depositors;
(d) that the housing finance institution has adequate capital structure and earning prospects;
(e) that the public interest shall be served by the grant of certificate of registration to the housing
finance institution to commence or to carry on the business in India;
(f) that the grant of certificate of registration shall not be prejudicial to the operation and growth
of the housing finance sector of the country; and
(g) any other condition, fulfilment of which in the opinion of the 2
[Reserve Bank], shall be
necessary to ensure that the commencement of or carrying on the business in India by a housing
finance institution shall not be prejudicial to the public interest or in the interests of the depositors:
3
[Provided that the Reserve Bank may, wherever it considers necessary so to do, require the National
Housing Bank to inspect the books of such housing finance institution and submit a report to the Reserve
Bank for the purpose of considering the application.]
(5) The 2
[Reserve Bank] may, after being satisfied that the conditions specified in sub-section (4) are
fulfilled, grant a certificate of registration subject to such conditions which it may consider fit to impose.
(6) The 2
[Reserve Bank] may cancel a certificate of registration granted to a housing finance
institution under this section if such institution—
(i) ceases to carry on the business of a housing finance institution in India; or
(ii) has failed to comply with any condition subject to which the certificate of registration had
been issued to it; or
1. Sub-section (3) omitted by Act 23 of 2019, s. 154 (w.e.f. 9-8-2019).
2. Subs. by s. 154, ibid., for “National Housing Bank” (w.e.f. 9-8-2019).
3. Ins. by s. 154, ibid. (w.e.f. 9-8-2019).
15
(iii) at any time fails to fulfil any of the conditions referred to in clauses (a) to (g) of
sub-section (4); or
(iv) fails—
(a) to comply with any direction issued by the 1
[Reserve bank or the National Housing Bank]
under the provisions of this Chapter; or
(b) to maintain accounts in accordance with the requirement of any law or any direction or
order issued by the 1
[Reserve bank or the National Housing Bank] under the provisions of this
Chapter; or
(c) to submit or offer for inspection its books of account and other relevant documents when
so demanded by an inspecting authority of the 1
[Reserve bank or the National Housing Bank]; or
(v) has been prohibited from accepting deposit by an order made by the National Housing Bank
under the provisions of this Chapter and such order has been in force for a period of not less than
three months:
Provided that before cancelling a certificate of registration on the ground that the 2
[housing
finance institution which is a company] has failed to comply with the provisions of clause (ii) or has
failed to fulfil any of the conditions referred to in clauses (a) to (g) of sub-section (4), the 3
[Reserve
Bank], unless it is of the opinion that the delay in cancelling the certificate of registration shall be
prejudicial to public interest or the interest of the depositors or the 2
[housing finance institution which
is a company], shall give an opportunity to such institution on such terms as the 3
[Reserve Bank] may
specify for taking necessary steps to comply with such provision or fulfilment of such condition:
Provided further that before making any order of cancellation of certificate of registration, such
institution shall be given a reasonable opportunity of being heard.
(7) A housing finance institution aggrieved by the order or rejection of application for registration
or cancellation of certificate of registration may prefer an appeal, within a period of thirty days from
the date on which such order of rejection or cancellation is communicated to it, to the Central
Government and the decision of the Central Government where an appeal has been preferred to it, or
of the 3
[Reserve Bank] where no appeal has been preferred, shall be final:
Provided that before making any order of rejection of appeal, such institution shall be given a
reasonable opportunity of being heard.
Explanation.—For the purposes of this section,—
(I) “net owned fund” means—
(a) the aggregate of the paid-up equity capital and free reserves as disclosed in the latest
balance-sheet of the housing finance institution after deducting therefrom—
(i) accumulated balance of loss;
(ii) deferred revenue expenditure; and
(iii) other intangible assets; and
(b) further reduced by the amounts representing—
(1) investments of such institution in shares of—
(i) its subsidiaries;
(ii) companies in the same group;
4
[(iii) all other housing finance companies; and]
(2) the book value of debentures, bonds, outstanding loans and advances (including
hire-purchase and lease finance) made to, and deposits with,—
(i) subsidiaries of such company; and
1. Subs. by Act 23 of 2019, s. 154, for “National Housing Bank” (w.e.f. 9-8-2019).
2. Subs. by s. 154, ibid., for “housing finance institution” (w.e.f. 9-8-2019).
3. Subs. by s. 154, ibid., for “National Housing Bank” (w.e.f. 9-8-2019).
4. Subs. by s. 154, ibid., for sub-item (iii) (w.e.f. 9-8-2019).
16
(ii) companies in the same group, to the extent such amount exceeds ten per cent.
of (a) above;
1
[(II) the expressions “subsidiaries” and “companies in the same group” shall have the
meanings respectively assigned to them in the Companies Act, 2013 (18 of 2013):
Provided that the National Housing Bank shall, in consultation with the Reserve Bank,
specify the companies to be deemed to be in the same group.]
29B. Maintenance of percentage of assets.—(1) Every 2
[housing finance institution which is a
company] shall invest and continue to invest in India in unencumbered approved securities, valued at a
price not exceeding the current market price of such securities, an amount which, at the close of business
on any day, shall not be less than five per cent. or such higher percentage not exceeding twenty-five per
cent. as the 3
[Reserve Bank] may, from time to time and by notification, specify, of the deposits
outstanding at the close of business on the last working day of the second preceding quarter.
(2) Every housing finance institution shall maintain in India in an account with a scheduled bank in
term deposits or certificate of deposits (free of charge or lien) or in deposits with the National Housing
Bank or by way of subscription to the bonds issued by the National Housing Bank, or partly in such
account or in such deposit or partly by way of such subscription, a sum which, at the close of business on
any day, together with the investment made under sub-section (1) shall not be less than ten per cent. or
4
[such higher percentage not exceeding twenty-five per cent., as the Reserve Bank may], from time to
time and by notification specify, of the deposits outstanding in the books of the housing finance
institution at the close of business on the last working day of the second preceding quarter.
(3) For the purpose of ensuring compliance with the provisions of this section, the 3
[Reserve Bank]
may require every such housing finance institution to furnish a return to it in such form, in such a manner
and for such period as may be specified by the 3
[Reserve Bank].
(4) If the amount invested by a housing finance institution at the close of business on any day is less
than the rate specified under sub-section (1) or sub-section (2), such housing finance institution shall be
liable to pay to the National Housing Bank, in respect of such shortfall, a penal interest at a rate of three
per cent. per annum above the bank rate on such amount by which the amount actually maintained or
invested falls short of the specified percentage, and where the shortfall continues in the subsequent
quarters, the rate of penal interest shall be five per cent. per annum above the bank rate on such shortfall
for each subsequent quarter.
(5) (a) The penal interest payable under sub-section (4) shall be payable within a period of fourteen
days from the date on which a notice issued by the National Housing Bank demanding payment of the
same is served on the housing finance institution and, in the event of a failure of the housing finance
institution to pay the same within such period, may be levied by a direction of the principal civil court
having jurisdiction in the area where an office of the defaulting housing finance institution is situated and
such direction shall be made only upon and application made in this behalf to the court by the National
Housing Bank; and
(b) When the court makes a direction under clause (a), it shall issue a certificate specifying the sum
payable by the housing finance institution and every such certificate shall be enforceable in the manner as
if it were a decree made by the court in a suit.
(6) Notwithstanding anything contained in this section, if the National Housing Bank is satisfied that
the defaulting housing finance institution had sufficient cause for its failure to comply with the provisions
of sub-section (1) or sub-section (2), it may not demand the payment of the penal interest.
Explanation.—For the purposes of this section,—
(i) “approved securities” means securities of any State Government or of the Central Government
and such bonds, both the principal whereof and the interest whereon shall have been fully and
unconditionally guaranteed by any such Government;
1. Subs. by Act 23 of 2019, s. 154, for clause (II) (w.e.f. 9-8-2019).
2. Subs. by s. 155, ibid., for “housing finance institution” (w.e.f. 9-8-2019).
3. Subs. by s. 155, ibid., for “National Housing Bank” (w.e.f. 9-8-2019).
4. Subs. by s. 155, ibid., for “such higher percentage not exceeding twenty-five per cent., as the National Housing Bank may”
(w.e.f. 9-8-2019).
17
(ii) “unencumbered approved securities” includes the approved securities lodged by the housing
finance institution with another institution for an advance or any other arrangement to the extent to
which such securities have not been drawn against or availed of or encumbered in any manner;
(iii) “quarter” means the period of three months ending on the last day of March, June, September
or December.
29C. Reserve fund.—(1) Every housing finance institution which is a company shall create a
reserve fund and transfer therein a sum not less than twenty per cent. of its net profit every year as
disclosed in the profit and loss account and before any dividend is declared.
Explanation.—A housing finance institution creating and maintaining any special reserve in terms of
clause (viii) of sub-section (1) of section 36 of the Income-tax Act, 1961 (43 of 1961), may take into
account any sum transferred by it for the year to such special reserve for the purposes of this sub-section.
(2) No appropriation of any sum from the reserve fund including any sum in the special reserve which
has been taken into account for the purposes of reserve fund in terms of sub-section (1), shall be made by
such housing finance institution except for the purpose as may be 1
[specified by the Reserve Bank] from
time to time and every such appropriation shall be 2
[reported to the National Housing Bank and the
Reserve Bank] within twenty-one days from the date of such withdrawal:
3
[Provided that the National Housing Bank or the Reserve Bank] may, in any particular case and for
sufficient cause being shown, extend the period of twenty-one days by such further period as it thinks fit
or condone any delay in making such report.
(3) Notwithstanding anything contained in sub-section (1), the Central Government may, on the
recommendation of 4
[the Reserve Bank] and having regard to the adequacy of the paid-up capital and
reserves of a housing finance institution which is a company in relation to its deposit liabilities, declare by
order in writing that the provisions of sub-section (1) shall not be applicable to such housing finance
institution for such period as may be specified in the order:
Provided that no such order shall be made unless the amount in the reserve fund under
sub-section (1), together with the amount in the share premium account, is not less than the paid-up
capital of the housing finance institution.]
5
[30. Reserve Bank to regulate or prohibit issue of prospectus or advertisement soliciting
deposits of money—The Reserve Bank may, if it considers necessary in the public interest so to do, by
general or special order,—
(a) regulate or prohibit the issue by any housing finance institution which is a company of any
prospectus or advertisement soliciting deposits of money from the public; and
(b) specify the conditions subject to which any such prospectus or advertisement, if not
prohibited, may be issued.]
6
[30A. Power of Reserve Bank to determine policy and issue directions—(1) If the Reserve Bank
is satisfied that, in the public interest or to regulate the housing finance system of the country to its
advantage or to prevent the affairs of any housing finance institution which is a company being conducted
in a manner detrimental to the interest of the depositors or in a manner prejudicial to the interest of such
housing finance institutions, it is necessary or expedient so to do, it may determine the policy and give
directions to all or any of the housing finance institution which is a company relating to income
recognition, accounting standards, making of proper provision for bad and doubtful debts, capital
adequacy based on risk weights for assets and credit conversion factors for off balance-sheet items and
also relating to deployment of funds by a housing finance institution which is a company or a group of
such housing finance institutions or housing finance institutions which are companies generally, as the
1. Subs. by Act 23 of 2019, s. 156, for “specified by the National Housing Bank” (w.e.f. 9-8-2019).
2. Subs. by s. 156, ibid., for “reported to the National Housing Bank” (w.e.f. 9-8-2019).
3. Subs. by s. 156, ibid., for “Provided that the National Housing Bank” (w.e.f. 9-8-2019).
4. Subs. by s. 156, ibid., for “the National Housing Bank” (w.e.f. 9-8-2019).
5. Subs. by s. 157, ibid., for section 30 (w.e.f. 9-8-2019).
6. Subs. by s. 158, ibid., for section 30A (w.e.f. 9-8-2019).
18
case may be, and such housing finance institutions shall be bound to follow the policy so determined and
the direction so issued.
(2) Without prejudice to the generality of the powers vested under sub-section (1), the Reserve Bank
may give directions to housing finance institutions which are companies generally or to a group of such
housing finance institutions or to any housing finance institution which is a company in particular as to—
(a) the purpose for which advances or other fund-based or non-fundbased accommodation may
not be made; and
(b) the maximum amount of advances or other financial accommodation or investment in shares
and other securities which, having regard to the paid-up capital, reserves and deposits of the housing
finance institution and other relevant considerations, may be made by that housing finance institution
to any person or a company or to a group of companies.
(3) The Reserve Bank may, if it considers necessary in the public interest so to do, issue directions to
housing finance institutions which are companies accepting deposits referred to in section 31, either
generally or to any group of such housing finance institutions accepting deposits, and in particular, in
respect of any matters relating to, or connected with, the receipt of deposits, including credit rating of the
housing finance institution which is a company accepting deposits, the rates of interest payable on such
deposits, and the periods for which deposits may be received.
(4) If any housing finance institution which is a company accepting deposits fails to comply with any
direction issued under sub-section (3), the Reserve Bank may, by order, prohibit the acceptance of
deposits by that housing finance institution.]
1
[31. Power of National Housing Bank to collect information from housing finance institutions
as to deposits.—(1) The National Housing Bank may at any time direct that every housing finance
institution which is a company accepting deposits shall furnish to the National Housing Bank and the
Reserve Bank in such form, at such intervals and within such time, such statements, information or
particulars relating to or connected with deposits received by such housing finance institution, as may be
specified by the National Housing Bank by general or special order.
(2) Without prejudice to the generality of the power vested in the National Housing Bank under
sub-section (1), the statements, information or particulars to be furnished under sub-section (1), may
relate to all or any of the following matters, namely, the amount of the deposits, the purposes and periods
for which, and the rates of interest and other terms and conditions on which, such deposits are received.
(3) Every housing finance institution which is a company receiving deposits, shall, if so required by
the National Housing Bank and within such time as the National Housing Bank may specify, cause to be
sent at the cost of such housing finance institution, a copy of its annual balance-sheet and profit and loss
account or other annual accounts to every person from whom the housing finance institution which is a
company holds, as on the last day of the year to which the accounts relate, deposits higher than such sum
as may be specified by the National Housing Bank.]
2
[32. Duty of housing finance institutions to furnish statements, etc., under this Chapter.—Every
housing finance institution which is a company shall furnish the statements, information or particulars
called for by the National Housing Bank or the Reserve Bank, as the case may be, and shall comply with
any direction given to it under the provisions of this Chapter.]
33. Powers and duties of auditors.—(1) The auditor of every 3
[housing finance institution which is a
company] shall enquire whether or not the housing finance institution has furnished to 4
[the National
Housing Bank and the Reserve Bank] such statements, information or particulars relating to or connected
with deposits received by it, as are required to be furnished under this Chapter, and the auditor shall,
except where he is satisfied on such enquiry that the 3
[housing finance institution which is a company]
has furnished such statements, information or particulars, make a report to 4
[the National Housing Bank
and the Reserve Bank] giving the aggregate amount of such deposits held by the 3
[housing finance
institution which is a company].
1. Subs. by Act 23 of 2019, s. 159, for section 31 (w.e.f. 9-8-2019).
2. Subs. by s. 160, ibid., for section 32 (w.e.f. 9-8-2019).
3. Subs. by s. 161, ibid., for “housing finance institution” (w.e.f. 9-8-2019).
4. Subs. by s. 161, ibid., for “the National Housing Bank” (w.e.f. 9-8-2019).
19
1
[(1A) The 2
[Reserve Bank] may, on being satisfied that it is necessary so to do, in the public interest
or in the interest of the depositors or for the purpose of proper assessment of the books of account, issue
directions to any housing finance institution or any group of housing finance institutions or housing
finance companies generally or to the auditors of such housing finance institution or institutions relating
to balance-sheet, profit and loss account, disclosure of liabilities in the books of account or any matter
relating thereto.]
(2) Where, in the case of a housing finance institution, being a company, the auditor has made, or
intends to make a report to 3
[the National Housing Bank and the Reserve Bank] under sub-section (1), he
shall include in his report under 4
[sub-section (2) of section 143 of the Companies Act, 2013 (18 of
2013)], the contents of the report which he has made, or intends to make, to 3
[the National Housing Bank
and the Reserve Bank].
5
[(3) Where the National Housing Bank is of the opinion that it is necessary so to do in the public
interest or in the interest of the housing finance institution or in the interest of the depositors of such
institution, 6
[it may at any time and shall, on being directed to do so by the Reserve Bank,] by order,
direct that a special audit of the accounts of the housing finance institution in relation to any such
transaction or class of transactions or for such period or periods, as may be specified in the order, shall be
conducted and the National Housing Bank may appoint an auditor or auditors to conduct such special
audit and direct the auditor or the auditors to submit the report to it.
(4) The remuneration of the auditors as may be fixed by the National Housing Bank, having regard to
the nature and volume of work involved in the audit and the expenses of or incidental to the audit, shall be
borne by the housing finance institution so audited.]
7
[
8
[33A. Power of Reserve Bank to prohibit acceptance of deposit and alienation of assets.—(1)
If any housing finance institution which is a company violates the provisions of any section or fails to
comply with any direction or order given by the National Housing Bank or the Reserve Bank, under any
of the provisions of this Chapter, the Reserve Bank may, by order, prohibit such housing finance
institution from accepting any deposit.
(2) Notwithstanding anything to the contrary contained in any agreement or instrument or any law for
the time being in force, the Reserve Bank on being satisfied that it is necessary so to do in the public
interest or in the interest of the depositors, may direct the housing finance institution which is a company,
against which an order prohibiting from accepting deposit has been issued, not to sell, transfer, create
charge or mortgage or deal in any manner with its property and assets without prior written permission of
the National Housing Bank for such period not exceeding six months from the date of the order.]
33B. Power of National Housing Bank to file winding up petition.—(1) The National Housing
Bank, on being satisfied that a housing finance institution which is a company,—
(a) is unable to pay its debt; or
(b) has by virtue of the provisions of section 29A become disqualified to carry on the business of
a housing finance institution; or
(c) has been prohibited by 9
[the National Housing Bank or the Reserve Bank] from receiving
deposit by an order and such order has been in force for a period of not less than three months; or
(d) the continuance of the housing finance institution is detrimental to the public interest or to the
interest of depositors of the company,
may file an application for winding up of such housing finance institution under the 10[Companies Act,
2013 (18 of 2013)].
1. Ins. by Act 15 of 2000, s. 16 (w.e.f. 12-6-2000).
2. Subs. by Act 23 of 2019, s. 161, for “National Housing Bank” (w.e.f. 9-8-2019).
3. Subs. by s. 161, ibid., for “the National Housing Bank” (w.e.f. 9-8-2019).
4. Subs. by Act 13 of 2018, s. 170, for “sub-section (2) of section 143 of the Companies Act, 2013 (18 of 2013)”
(w.e.f. 1-6-2018).
5. Ins. by Act 15 of 2000, s. 16 (w.e.f. 12-6-2000).
6. Subs. by Act 23 of 2019, s. 161, for “it may at any time” (w.e.f. 9-8-2019).
7. Ins. by Act 15 of 2000, s. 17 (w.e.f. 12-6-2000).
8. Subs. by Act 23 of 2019, s. 162, for section 33A (w.e.f. 9-8-2019).
9. Subs. by s. 163, ibid., for “the National Housing Bank” (w.e.f. 9-8-2019).
10. Subs. by Act 13 of 2018, s. 171, for “Companies Act, 1956 (1 of 1956)” (w.e.f. 1-6-2018).
20
(2) A housing finance institution which is a company shall be deemed to be unable to pay its debt if it
has refused or has failed to meet within five working days any lawful demand made at any of its offices or
branches and the National Housing Bank certifies in writing that such company is unable to pay its debt.
(3) A copy of every application made by the National Housing Bank under sub-section (1) shall be
sent to 1
[the Registrar of Companies and the Reserve Bank].
(4) All the provisions of the Companies Act, 1956 (1 of 1956) relating to winding up of a company
shall apply to a winding up proceeding initiated on the application made by the National Housing Bank
under this provision.]
2
[33C. Power to take action against auditors.—Where any auditor fails to comply with any
direction given or order made by the National Housing Bank or the Reserve Bank under section 33, the
Reserve Bank may, after giving a reasonable opportunity of being heard, remove or debar the auditor
from exercising the duties as auditor of any of the Reserve Bank regulated entities for a maximum period
of three years, at a time.]
34. Inspection.—(1) The National Housing Bank may, 3
[at any time or on being directed so to do by
the Reserve Bank, shall], cause an inspection to be made by one or more of its officers or employees or
other persons (hereafter in this section referred to as the inspecting authority) of any 4
[housing finance
institution which is a company], for the purpose of verifying the correctness or completeness of any
statement, information or particulars furnished to the National Housing Bank or for the purpose of
obtaining any information or particulars which the housing finance institution has failed to furnish on
being called upon to do so.
(2) It shall be the duty of every director or member of any committee or other body or any person for
the time being vested with the management of the whole or part of the affairs of every housing finance
institution accepting deposits or other officer or employee thereof to produce to the inspecting authority
all such books, accounts and other documents in his custody or power and to furnish that authority with
any statement and information relating to the business of the institution as that authority may require of
him, within such time as may be specified by that authority.
(3) The inspecting authority may examine on oath any director or member of any committee or body
or any other person for the time being vested with the management of the affairs of the housing finance
institution, accepting deposits, or any officer or employee thereof, in relation to its business.
5
[(4) The National Housing Bank shall submit a copy of the report of inspection referred to in
sub-section (1) to the Reserve Bank.]
35. Deposits not to be solicited by unauthorised persons.—No person shall solicit on behalf of any
6
[housing finance institution which is a company] either by publishing or causing to be published any
prospectus or advertisement or in any other manner deposits of money from the public unless—
(a) he has been authorised in writing by the said housing finance institution to do so and specifies
the name of the institution which has so authorised him; and
(b) the prospectus or advertisement complies with any order made by the 7
[Reserve Bank] under
section 30 and with any other provision of law for the time being in force applicable to the
publication of such prospectus or advertisement.
1. Subs. by Act 23 of 2019, s. 163, for “the Registrar of Companies” (w.e.f. 9-8-2019).
2. Ins. by Act 18 of 2023, s. 2 and Schedule (w.e.f. 22-01-2024).
3. Subs. 23 of 2019, s.164, for “at any time” (w.e.f. 9-8-2019).
4. Subs. by s. 164, ibid., for “housing finance institution accepting deposits” (w.e.f. 9-8-2019).
5. Ins. by s. 164, ibid. (w.e.f. 9-8-2019).
6. Subs. by s. 165, ibid., for “housing finance institution” (w.e.f. 9-8-2019).
7. Subs. by s. 165, ibid., for “National Housing Bank” (w.e.f. 9-8-2019).
21
1
[35A. Disclosure of information.—(1) Any information relating to a 2
[housing finance institution
which is a company],—
(a) contained in any statement or return submitted by such institution under the provisions of this
Chapter; or
(b) obtained through audit or inspection or otherwise by 3
[the National Housing Bank or the
Reserve Bank, as the case may be,]
shall be treated as confidential and shall not, except otherwise provided in this section, be disclosed.
(2) Nothing in this section shall apply to—
(a) the disclosure by any 2
[housing finance institution which is a company], with the previous
permission of 3
[the National Housing Bank or the Reserve Bank, as the case may be], of any
information furnished to 3
[the National Housing Bank or the Reserve Bank, as the case may be] under
sub-section (1);
(b) the publication by 3
[the National Housing Bank or the Reserve Bank, as the case may be], if it
considers necessary in the public interest so to do, of any information collected by it under
sub-section (1) in such consolidated form as it may think fit without disclosing the name of any
2
[housing finance institution which is a company] or its borrowers;
(c) the disclosure by the 2
[housing finance institution which is a company] or by 3
[the National
Housing Bank or the Reserve Bank, as the case may be] of any such information to any other
2
[housing finance institution which is a company] or in accordance with the practice and usage
customary amongst such institutions or as permitted or required under any other law:
Provided that any such information received by a 2
[housing finance institution which is a company]
under this clause shall not be published except in accordance with the practice and usage customary
amongst institutions or as permitted or required under any other law.
(3) Notwithstanding anything contained in this Act or in any other law for the time being in force,
3
[the National Housing Bank or the Reserve Bank, as the case may be], if it is satisfied that, in the public
interest or in the interest of the depositors or the 2
[housing finance institution which is a company] or to
prevent the affairs of any 2
[housing finance institution which is a company] being conducted in a manner
detrimental to the interest of the depositors, it is expedient so to do, may, either on its own motion or on
being requested, furnish or communicate any information relating to the conduct of business by any
2
[housing finance institution which is a company] to any authority constituted under any law.
(4) Notwithstanding anything contained in any other law for the time being in force, no court or
tribunal or other authority shall compel 3
[the National Housing Bank or the Reserve Bank, as the case
may be] to produce or to give inspection of any statement or other material obtained by 3
[the National
Housing Bank or the Reserve Bank, as the case may be] under any provision of this Chapter.
4
[35B. Power of Reserve Bank to exempt housing finance institution.—(1) The Reserve Bank, on
being satisfied that it is necessary so to do, may declare by notification that all or any of the provisions of
this Chapter shall not apply to a housing finance institution which is a company or a group of such
housing finance institutions either generally or for such period as may be specified, subject to such
conditions, limitations or restrictions as it may think fit to impose.
(2) Every notification made under this section shall be laid, as soon as may be after it is made, before
each House of Parliament.]]
1. Ins. by Act 15 of 2000, s. 18 (w.e.f. 12-6-2000).
2. Subs. by Act 23 of 2019, s. 166, for “housing finance institution” (w.e.f. 09-08-2019).
3. Subs. by s. 166, ibid., for “the National Housing Bank” (w.e.f. 09-08-2019).
4. Subs. by s. 167, ibid., for section 35B (w.e.f. 09-08-2019).
22
36. Chapter V to override other laws.—The provisions of this Chapter shall have effect
notwithstanding anything inconsistent therewith contained in any other law for the time being in force or
any instrument having effect by virtue of any such law.
1
[36A. Power to order repayment of deposit.—(1) Every deposit accepted by a housing finance
institution which is a company unless renewed, shall be repaid in accordance with the terms and
conditions of such deposit.
(2) Where a housing finance institution which is a company has failed to repay any deposit or part
thereof in accordance with the terms and conditions of such deposit, such officer of the National Housing
Bank, as may be authorised by the Central Government for the purpose of this section (hereinafter
referred to as the “authorised officer”) may, if he is satisfied, either on his own motion or on any
application of the depositor, that it is necessary so to do to safeguard the interests of the housing finance
institution, the depositors or in the public interest, direct, by order, such housing finance institution to
make repayment of such deposit or part thereof forthwith or within such time and subject to such
conditions as may be specified in the order:
Provided that the authorised officer may, before making any order under this sub-section, give a
reasonable opportunity of being heard to the housing finance institution and the other persons interested
in the matter.
36B. Nomination by depositors.—(1) Where a deposit is held by a housing finance institution to the
credit of one or more persons, the depositor or, as the case may be, all the depositors together may
nominate, in the manner prescribed by rules made by the Central Government under section 45ZA of the
Banking Regulation Act, 1949 (10 of 1949) one person to whom in the event of the death of the sole
depositor or the death of all the depositors, the amount of deposit may be returned by the housing finance
institution.
(2) Notwithstanding anything contained in any other law for the time being in force, or in any
deposition, whether testamentary or otherwise, in respect of such deposit, where a nomination made
purports to confer on any person the right to receive the amount of deposit from the housing finance
institution, the nominee shall, on the death of the sole depositor or, as the case may be, on the death of all
the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the
depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied
or cancelled in the manner prescribed by rules made by the Central Government under section 45ZA of
the Banking Regulation Act, 1949 (10 of 1949).
(3) Where the nominee is a minor, it shall be lawful for the depositor making the nomination to
appoint, in the manner prescribed by rules made by the Central Government under section 45ZA of the
Banking Regulation Act, 1949 (10 of 1949), any person to receive the amount of deposit in the event of
his death during the minority of the nominee.
(4) Payment by a housing finance institution in accordance with the provisions of this section shall
constitute a full discharge to the housing finance institution of its liability in respect of the deposit:
Provided that nothing contained in this sub-section shall affect the right or claim which any person
may have against the person to whom any payment is made under this section.
(5) No notice of the claim of any person, other than the person or persons in whose name a deposit is
held by the housing finance institution, shall be receivable by the housing finance institution, nor shall the
housing finance institution be bound by any such notice even though expressly given to it:
1. Ins. by Act 15 of 2000, s. 19 (w.e.f. 12-6-2000).
23
Provided that where any decree, order, certificate or other authority from a court of competent
jurisdiction relating to such deposit is produced before a housing finance institution, the housing finance
institution shall take due note of such decree, order, certificate or other authority.]