RBI eases norms for funding low-cost housing projects
The Reserve Bank of India (RBI) has eased norms to fund low-cost housing by permitting banks to extend loans against long-term infrastructure bonds.<br />
Mumbai: The Reserve Bank of India (RBI) has eased norms to fund low-cost housing by permitting banks to extend loans against long-term infrastructure bonds.
The RBI however barred lenders from providing loans against long-term infrastructure bonds issued by other banks.
"Further, such loans should be subject to a ceiling, say, Rs 10 lakh ($16,170) per borrower, and tenure of loan should be within the maturity period of the bonds," the central bank said in a circular.
In July, the RBI had allowed long-term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements.
Reuters
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