NHB-promoted RMBS Development Company receives registration certificate from RBI

New Delhi, Jan 27 (PTI) RMBS Development Company Limited (RDCL) has received Certificate of Registration (CoR) from Reserve Bank of India (RBI) to commence operations, the finance ministry said in a statement.
    The Company is envisioned to play the role of a commercially sustainable market intermediary to facilitate the growth and development of Residential Mortgage-Backed Securitisation (RMBS) market in the country, it said.
    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 company.
    The paid-up Capital of the Company is Rs 500 crore with its Registered Office at Mumbai.
    The Company is expected to commence operations in March, 2025, the finance ministry said.
     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 instil confidence in the ecosystem and bring valuable experience in RMBS market development, it added.
     "As part of its key business activities, the Company will invest in RMBS issuances, extend second loss credit enhancements, support liquidity, promote standard process and documentation and other related activities for market development," it said.
    The Certificate of Registration was issued on January 23, 2025.
    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 on March 31, 2019 to Rs 33.19 lakh crore as on 31st March 2024 with a CAGR of 13.1 per cent and this growth is expected to continue, the ministry said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)