CALCUTTA, August 12: Private-sector housing finance companies may soon be allowed to raise deposits from non-resident Indians, a funding route so far restricted to institution-sponsored HFCs.

The Reserve Bank of India has sought the finance ministry's opinion on permitting NRI funds to flow to the private players as well.The central bank has also sought the ministry's permission for allowing the private HFCs to extend housing loans to NRIs.

Top banking sources told: "The move is being considered to provide a level-playing field to the private sector operators, who are at a disadvantage under the present norms."

In fact, for quite some time private sector HFCs such as Dewan Housing, Global Housing, Weizmann Housing Finance and Hometrust Housing Finance have been lobbying the National Housing Bank for permission to tap NRI funds, so that they are offered facilities at par with their "stronger" institutionalised partners like HDFC, LIC Housing, GIC Housing or SBI Home Finance.

The NHB, agreeing with the HFCs, had referred the matter to the RBI.The relaxation, if cleared, will come as a major boost for the housing sector, which has been severely hit by a funds shortage. Housing shortages are estimated at over 32 million units.

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