According to the revised guidelines by the RBI, deposit-taking housing finance companies (HFCs) are required to maintain liquid assets to the extent of what percentage of public deposits on an ongoing basis by January 1, 2025?

Correct option is D

Deposit-taking HFCs are required to maintain liquid assets to the extent of 14% of public deposits on an ongoing basis by January 1, 2025.
· Liquid Asset Requirement:
· Currently, deposit-taking HFCs must maintain 13% liquid assets against public deposits.
· By January 1, 2025, this requirement increases to 14%.
· By July 2025, they must maintain 15% of liquid assets.
· Repayment Tenure for Public Deposits:
· The RBI mandates that public deposits accepted or renewed by HFCs must now be repayable after a minimum period of 12 months and up to a maximum of 60 months.
· Existing deposits with maturities exceeding 60 months can be repaid according to their repayment profile.
· Previously, HFCs were permitted to accept or renew deposits for periods of up to 120 months.
· Revised Ceiling on Public Deposits: The permissible public deposit ceiling for HFCs has been reduced from 3 times to 1.5 times of Net Owned Fund (NoF), enhancing regulatory alignment with NBFCs.