The RBI on Wednesday came out with a slew of directions related to the maintenance of liquidity coverage ratio, risk management, asset classification and loan-to-value ratio for housing finance companies (HFCs).

It asked HFCs to maintain a liquidity buffer in terms of liquidity coverage ratio (LCR) to ensure that they have sufficient high-quality liquid asset to survive any acute liquidity stress scenario lasting for 30 days.

All non-deposit taking HFCs with an asset size of Rs 10,000 crore and above, and all deposit taking HFCs will have to achieve a minimum LCR of 50 per cent by December 1, 2021 and gradually to 100 per cent by December 1, 2025.

Non-deposit-taking HFCs with asset size of Rs 5,000 crore and above but less than Rs 10,000 crore will have to reach a minimum LCR of 30 per cent by December 1, 2021 and to 100 per cent by December 1, 2025.