RBI is tweaking policies to make affordable housing a reality
Since BJP election manifesto had talked about providing housing to all by the 75th independence day of the nation, the center is now taking measures to make this a reality.
It started the same with the change in nomenclature and named it under SardarVallabhbhai Patel- the renowned freedom fighter of India. Rajiv Awasyojna (RAY) will be integrated into this new scheme for providing housing to urban poor.
The Reserve Bank of India (RBI) is tweaking its policies in order to meet the needs for affordable housing and other essential real estate sectors. Deputy Governor R. Gandhi on Wednesday talked in details about the plans which RBI is going to take to make the dream of ‘’housing for all by 2022’’ as reality.
Gandhi was addressing an industry event and talked about the new measures which will safeguard the interests of the real estate developers who are planning to launch some projects in the affordable housing segments. Since the profit margins are low, the developers are reluctant to invest in housing for the low income group or the urban poor.
Gandhi also mentioned that the RBI will also periodically review the definition of affordable housing to account for inflation. As a part of the recent policy measures, the central bank had last month allowed the long-term bonds raised by the banks for infrastructure lending to be exempted from mandatory reserve requirements.
Source- Thompson Reuters
Affordable housing segments, BJP election manifesto for Mysore, Rajiv AwasYojna, Reserve Bank of India, SardarVallabhbhai Patel
