RBI announces relief for real estate sector1 min read . Updated: 06 Feb 2020, 12:26 PM IST
- The central bank also announces measures to boost consumer loans for autos and homes
- The government had also announced measures to boost real estate sector
The Reserve Bank of India today announced some measures to boost the real estate sector. "It has been decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by another one year without downgrading the asset classification, in line with treatment accorded to other project loans for non-infrastructure sector. This would complement the initiatives taken by the Government of India in the real estate sector," the RBI said.
Also to boost consumer home and auto loans, the RBI said that from the end of of the fortnight ended January 31, 2020, banks will be will be allowed to deduct the equivalent of incremental credit disbursed by them as retail loans from their net demand and time liabilities (NDTL) for maintenance of cash reserve ratio.
"Alongside sustained efforts to improve monetary transmission, the Reserve Bank is actively engaged in revitalizing the flow of bank credit to productive sectors having multiplier effects to support impulses of growth. As a part of this, it has now been decided that scheduled commercial banks will be allowed to deduct the equivalent of incremental credit disbursed by them as retail loans for automobiles, residential housing and loans to micro, small and medium enterprises (MSMEs), over and above the outstanding level of credit to these segments as at the end of the fortnight ended January 31, 2020 from their net demand and time liabilities (NDTL) for maintenance of cash reserve ratio (CRR). This exemption will be available for incremental credit extended up to the fortnight ending July 31, 2020," the RBI said in a statement.