Home >Industry >Banking >Round-the-clock RTGS to rejig of home loan rules: What RBI had for you today

The Reserve Bank of India (RBI) left key interest rates unchanged on Friday but signalled more easing ahead to support an economy that it sees contracting 9.5 per cent in the current fiscal.

The six-member Monetary Policy Committee, with three newly inducted external members, voted unanimously to retain the benchmark repurchase or repo rate at 4 per cent while keeping its policy stance accommodative, implying it could ease again.

Here's what the latest RBI MPC meet had for you, the consumer:

1) In a business friendly move, the Reserve Bank of India on Friday said that Real Time Gross Settlement System (RTGS), used for large value transactions, will be made available round-the-clock from December.

In December 2019, the National Electronic Funds Transfer (NEFT) system was made available on a 24x7x365 basis.

Currently, RTGS is available for customers from 7.00 am to 6.00 pm on all working days of a week, except second and fourth Saturdays of every month.

2) Real estate developers on Friday welcomed the RBI's decision to lower risk weightage on housing loans, saying it would boost credit flow to the sector, but demanded that more steps should be taken to revive the industry.

The RBI decided to rationalise the risk weights by linking them only with LTV (Loan to Value) ratios for all new housing loans sanctioned up to March 31, 2022. With lowering of risk weightage, the requirement of capital provision for banks will come down.

Commenting on the monetary policy, CREDAI National President Satish Magar said linking of housing loans to LTV would boost housing demand.

3) Threshold for aggregate exposure of retail bank loans to one counterparty increased to 7.5 crore from 5 crore.

4) System-based automatic caution-listing for exporters discontinued to help them negotiate better terms with overseas buyers.

5) With higher government borrowing resulting in increased supply of government securities, the Reserve Bank of India on Friday said it is ready to conduct market operations to assuage pressures arising out of it and dispel any illiquidity in financial markets.

With PTI inputs

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout