RBI’s move to ease norms for banks to raise long term funds appreciated by CREDAI and NAREDCO
Realtors’ body CREDAI (The confederation of Real Estate Developers’ Association of India) today appreciated the RBI’s (Reserve Bank of India) move to ease norms for banks to raise long term funds for financing affordable housing. They believe that this will lead to cheaper credit for such projects.
In order to encourage infrastructure development and affordable housing, RBI today exempted long term bonds from mandatory regulatory norms like CRR (Cash Reverse Ratio) and SLR (Statutory Liquidity Ratio) if the money raised is used for funding of such projects.
CREDAI Chairman Lalit Jain mentioned that this is a welcome step. This will lead to lower interest rates for affordable housing projects. Another realtors’ body NAREDCO (National Real Estate Development council) Chairman Navin Raheja stated that this will help the developers to mobilise cheaper finance for the development of affordable housing and will result into cutting in prices of housing in long term.
Raheja also mentioned that the home loan rates may also come down because of this move. On the whole this is a good news for the home buyers as well as the developers as the demand is expected to surge and some momentum will come in the otherwise sluggish real estate market.
Jain of CREDAI demanded that the housing sector should be given infrastructure status and felt that Pune, Ahmedabad and Lucknow should have figured in the list of metropolitan cities.
Source- The Economic Times
banking, Cash Reverse Ratio, Central bank, financial and business service, Infra bonds, long-term bonds, macro economics, National Real Estate Development Council, RBI, Statutory liquidity ratio
