Welcome to Notes on Notes – a personal finance show featuring Harish Rao, a financial expert from Bangalore. Harish is also the guest editor of the hugely popular “Simple Equation Blog” on livemint.com. Every fortnight on this show, Harish will clarify news and demystify myths in the personal finance space and give you tips on how to smartly invest and grow your money.
This week, Harish talks about what the cuts in Repo and Reverse Repo rates mean for end consumers and the real estate market in India.
In other personal finance news:
J. Hari Narayan, chairman of Irda, said this was because that they did not permit credit default swaps any insurance against default and investment in derivatives.
Private sector lender ICICI Bank has cut its home loan rates by 25-50 basis points for new customers effective immediately. The bank lowered the rate from 10% to 9.75% on home loans of less than Rs2 million. The rate on loans in the Rs2-3 million bracket has dropped to 10% from 10.5%. It has also cut rates in the Rs3 million bracket to 11.5% from 12%.
The Reserve Bank of India said it may launch a housing start-up index on a quarterly basis. The index will be based on newly built residential units in urban India. The Indian central bank plans to set up a committee to oversee the exercise. The development of such an index is one of the major recommendations of a technical advisory group, constituted by the banking regulator to suggest a methodological framework and institutional arrangements for regular compilation of the Housing Start-up Index.
Higher demand for housing has a positive impact on sectors such as steel and cement while the construction sector employs millions of workers.