RBI gives homebuyers reason to cheer

Apart from the 25 bps hike in the repo rate, the RBI on Wednesday  announced several other important decisions. The central bank said home loans up to Rs 35 lakh in metros will now qualify for priority sector lending (PSL). Earlier, only home loans up to Rs 28 lakh were eligible for this benefit.

Under PSL, banks have been given targets in terms of percentage of total credit to be made available to sectors such as agriculture, renewable energy, and housing. This makes credit easily available at more affordable rates for those seeking loans.

In a tweet, Rajiv Kumar, secretary, Department of Financial Services, called the move a “big boost to housing for all”.

The RBI also said it intends to have a draft set of regulations to check market abuse.

RBI deputy governor, Viral Acharya, said the bank will come up with “enforceable regulations” on par with global standards. It will also look to incentivise those who adhere to the code of conduct. Acharya added that the RBI will constitute a task force to set up a public credit registry to aid ease of doing business.

RBI deputy governor, N.S. Vishwanathan, said the bank will extend its loan repayment relief for GST-registered Micro, Small and Medium Enterprises (MSME) to even those not registered under GST. In February, the RBI had announced that GST-registered MSMEs could delay their repayments by up to 180 days from the due date without being labelled defaulters.

The RBI also said that it will be coming out with a policy paper in three months to foster innovation in the payments space to avoid concentration risks and encourage private players to implement payment innovations.