RBI’s Measures Will Provide Major Relief To Developers: Experts

The RBI announced several measures to facilitate bank credit flows

In a major move to boost liquidity in the market, the RBI announced several additional measures to accelerate the economy and facilitate bank credit flows even as the Centre has extended the nationwide lockdown to stop the spread of coronavirus.

Among the various measures announced, notably its allotment of Rs 10,000 crore to National Housing Bank is a big move for the real estate sector, which is reeling under the liquidity crisis. It will help provide capital to HFCs and eventually provide major relief to developers battling liquidity issues in Covid-19 times, according to Anuj Puri, Chairman Anarock Property Consultants.

You might also be interested to read: Income Tax Refund: How To Ensure You Get Your I-T Refund In 5-7 Days

Further, RBI has reduced the reverse repo rates by 25 bps, and it now stands at 3.75 per cent. This is another big step as the rate cut will definitely send out positive signals in the current times, and will enable banks to lend even more.

In another major relief to developers, the RBI has further extended the date of commencement of commercial operations of project loans for commercial real estate projects, which are delayed for reasons beyond the control of promoters.

Source: The Hindu BusinessLine

Comments are closed.