Consider
sanctioning such loans using deposits as collateral, says Mr. R Gandhi
Reserve
Bank of India (RBI) has called upon banks to bring in more financial innovation
into housing loan products by linking such loans to deposits.
According
to Mr. R Gandhi, Deputy Governor, RBI, “Savings can be induced to generate
savings balance by way of monthly or / periodic deposits. This will serve as a
track record for future housing loan products & once it reaches a certain
balance, the financial institution can consider sanctioning the housing loan
with the balance in the account acting as collateral.”
Mr.
Gandhi said the RBI will also periodically review the definition of affordable
housing, taking inflation into account,
Further,
he mentioned the need to internalise the credit risk originating in the housing
sector, particularly the low-ticket housing segment, through proper insurance
schemes for banks and other institutions.
Mr.
Gandhi asked various stakeholders to ensure timely completion and delivery of
projects without escalating the costs. In addition, he highlighted the need to
develop an elaborate system for collecting data on real estate and housing
activity to facilitate informed policy decisions.
Amid
demands from the real estate industry with regard to funding from banks, Mr.
Gandhi also asked them to moderate their expectations as banks are ultimately
the trustees of public money and it needs to be used efficiently for all
sectors.
On
differential licensing, Mr. Gandhi said the central bank intends to issue the
final guidelines during this financial year after analysing comments &
suggestions invited from various stakeholders.
Asked
if state - owned India Post will apply for a banking licence, he said the
Government has to give its approval & only then can it apply to the RBI.
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