RDCL, a Residential Mortgage-Backed Securitisation (RMBS) company established by NHB, has been granted a Certificate of Registration by the RBI to begin its operations.
RMBS Development Company Limited (RDCL) has received its Certificate of Registration (CoR) from the Reserve Bank of India (RBI) to begin operations, as of January 23, 2025.
Established by the National Housing Bank (NHB), a statutory body of the Government of India, RDCL is supported by a diverse group of investors, including Banks, HFCs/NBFCs, and Insurance companies, with NHB being the largest shareholder.
The company is designed to act as a commercially viable market intermediary to promote the growth and development of the Residential Mortgage-Backed Securitisation (RMBS) market in India. Its operations will offer long-term institutional investors, such as insurance companies, pension, and provident funds, new investment opportunities in the RMBS market. The involvement of a broad range of investors will help build confidence and contribute valuable expertise to the RMBS market’s development.
As part of its core operations, the company will engage in investing in RMBS issuances, provide second-loss credit enhancements, offer liquidity support, promote standardized processes and documentation, and carry out other activities aimed at market development.
A robust RMBS market can serve as a reliable supplement to existing funding and liquidity sources for Primary Lending Institutions. Over the past five years, the outstanding individual housing loans have increased from ₹17.95 Lakh Crore as of March 31, 2019, to ₹33.19 Lakh Crore as of March 31, 2024, reflecting a compound annual growth rate (CAGR) of 13.1%. This growth trend is anticipated to continue.
The company has a paid-up capital of ₹500 crore, with its registered office located in Mumbai. It is expected to begin its operations in March 2025.