RBI Projecting the Banks under Lens

November 20, 2006	(Be the first to rate this story!)  Loading ...
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In an attempt to tighten credit flow to the housing sector, Reserve Bank of India has come up with some fresh directives for the banks emphasizing on the need to maintain strictness while issuing the loans regarding new construction home loans and purchase of the property.

However, simple modifications have been made in the existing guidelines that strictly advised the banks not to entertain the loan applications for unauthorized properties.

Banking supervisors have the authority to recall the entire loan procedure and reject any proposals if the borrower fails to submit all the demanded certificates within three months of completion of construction.

Analysts believe that the recent on goings in the real estate, capital market and consumer credit calls for a closer inspection of funds flow into these segments. On the other hand, the issue has been discussed by the industry players who feel that such a move can be harmful to the sector in the long run.

News Published Under:   Real Estate India, Home Loans |

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