RDCL receives RBI approval to commence operations

Residential Mortgage-Backed Securitisation (RMBS) Development Company Limited (RDCL), established by the National Housing Bank (NHB), has obtained its Certificate of Registration (CoR) from the Reserve Bank of India (RBI) on January 23, 2025. This milestone allows RDCL to officially begin operations, with plans to launch in March 2025.

NHB, as the primary shareholder, has created RDCL to facilitate the development of the RMBS market in India. The company aims to attract long-term institutional investors, such as insurance companies and pension funds, to bolster residential mortgage financing. By providing second-loss credit enhancements, promoting standardization, and ensuring liquidity, RDCL is set to strengthen the RMBS ecosystem.

Over the past five years, individual housing loans have grown at a compound annual growth rate (CAGR) of 13.1%, from ₹17.95 lakh crore in 2019 to ₹33.19 lakh crore by March 2024. With a paid-up capital of ₹500 crore, RDCL’s operations are expected to provide an additional funding source for primary lending institutions, ensuring continued growth in India’s housing finance sector.