RBI strives for realty sector’s viability
While banks are being unwilling to provide real estate loans, the Reserve Bank of India has been following a cautious policy to reduce risks associated with realty sector and to ensure that the sector remains sustainable and viable over a long period of time.
National Housing Bank (NHB) has also played its role in de-risking the sector. This major initiative taken by NHB is promoting what is known as Indian Mortgage Guarantee Company as a joint venture. It has also introduced special refinance scheme for low-income housing.
In the 2012-13 Budget, the government has allowed external commercial borrowings (ECBs) for low-cost affordable housing projects, to make additional houses available for the low-income groups.
ECBs are being allowed by the government for providing additional source of funds to corporates and PSUs for financing expansion as well as for fresh investment in various sectors.
The RBI had on June 22 pumped in about Rs 12,000 crore into the system by buying government securities commonly known as OMO to ease the liquidity situation. OMOs help the RBI to manage the liquidity shortfall in the system.
To read more real estate news:
ICICI Bank provides special loan to NRIs
Buyers demand transparency from realtors, authority
Source: Zee News
Affordable Housing, Banks, Budget, External commercial borrowings (ECBs), Funds, government securities, Indian Mortgage Guarantee Company, Joint venture, liquidity, Low income groups, low-income housing, National Housing Bank (NHB), OMO, PSUs, RBI, real estate loan, Realty sector, refinance, Reserve Bank of India, risks
[...] RBI strives for realty sector's viability | Apartment Community Stories [...]