TITLE: India's Reserve Bank Issues Second Amendment Directions for Housing Finance Companies Advertising Standards
BODY:
On June 15, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026, amending its Housing Finance Companies Directions, 2025. The amendment consolidates advertising, marketing, and sales standards for Housing Finance Companies (HFCs) by aligning them with broader non-banking financial company requirements.
The RBI reviewed existing instructions on advertising, marketing, and sales practices previously issued to HFCs under Chapter X of the Fair Practices Code. The central bank determined that comprehensive instructions should apply uniformly across all Non-Banking Financial Companies (NBFCs), including HFCs, while excluding Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, and NBFCs without customer interfaces. The amendment deletes paragraphs 150 to 154 (Advertising, Marketing and Sales) and paragraphs 155 to 157 (Code of Conduct for Direct Selling Agents and Direct Marketing Agents) from Chapter X of the HFC Directions. These sections are replaced with a new provision requiring HFCs to comply with paragraphs 101A to 101ZA under Chapter IIIA of the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. This consolidation streamlines regulatory requirements by establishing a single set of standards for financial product and service marketing across the NBFC sector.
The amendment becomes effective on January 1, 2027. HFCs must ensure full compliance with the consolidated advertising and marketing standards outlined in the Non-Banking Financial Companies – Responsible Business Conduct Directions by this date.