RBI Relaxes Restrictions On HDFC Credila, Allowing Addition Of New Customers After Fulfilling Conditions

The Reserve Bank of India (RBI) has recently relaxed the restrictions imposed on HDFC Credila Financial Services Pvt. Ltd. The relaxation allows HDFC Credila, a subsidiary of HDFC Bank, to add new customers to its portfolio.

The restrictions on HDFC Credila, which prevented the addition of new customers, have been lifted after the company fulfilled the conditions set by the Reserve Bank of India (RBI). According to the filing, one of the conditions required HDFC Credila to submit an application for the change in its shareholding as a non-banking finance company to the central bank before July 31, 2023.

It is worth noting that the relaxation of these restrictions is part of the directives given in relation to the merger of HDFC and HDFC Bank (HDBK.NS). The RBI had instructed the company to reduce its stake in the education finance unit to 10% within the next two years and cease onboarding new customers.

HDFC, in April of the previous year when it unveiled a monumental $40 billion merger deal with HDFC Bank. In a recent development, HDFC announced that BPEA EQT and ChrysCapital have agreed to acquire a substantial 90% stake in HDFC Credila, the specialized education loan provider, for a significant sum of 90.60 billion rupees. Following the stake sale, HDFC will retain a minority share of 9.99% in the unit, ensuring continued involvement and support for its operations.