Rationalisation of Risk Weight Of Housing Loans, A Welcome Step
Satish Magar, President, CREDAI National
Through the Monetary Policy Committee announcements, RBI continues to maintain an accommodative stance while focusing on economic revival. The steps to control retail inflation and positive agricultural outlook with record production shall aid in recovery from COVID related stress albeit to a very small extent.
The move to extend co-lending scheme to NBFCs & HFCs may infuse additional liquidity; however, we feel the strict due diligence norms and eligibility criteria will not benefit the Realty sector. The linking of housing loans to LTR is a welcome step and may play a significant role in boosting demand in affordable housing segment.
Now that RBI has recognized realty sector as the largest employer, it should also announce steps that are imperative and crucial for the sector’s survival and then introduce measures that will aid the sector’s revival.
The extension of moratorium and making all accounts that were SMA 1 & SMA 2 as on 01 March 2020 eligible for restructuring are few of CREDAI’s demands to mitigate COVID related stress on businesses which should be considered by the government and provide support to the distressed sector.