Banking, Housing, And Other Sectors Satisfied With RBI’s Steps

Banking, housing, and other sectors experts satisfied with RBI’s steps hope to get the necessary boost for growth. Indian Banking, housing, and other industry have welcomed the Reserve Bank of India’s (RBI) approach of keeping the monetary policy stance liberal.

Chandrajit Banerjee, director-general of the Confederation of Indian Industry (CII), the industry and commerce organization, said the RBI has taken a number of measures in the form of liquidity support, export revival, credit support, and improving business ease.

These are expected to give the necessary impetus to growth at the three-tier pace as per RBI’s requirement.

According to Sangeeta Reddy, president of industry body FICCI, instead of cutting the repo rate, other measures have been announced which will help in reducing interest rates.

Assocham Secretary General Deepak Sood said that the RBI’s decisions reflect the resolve to face the unprecedented situation created by the COVID-19 epidemic.

Ashutosh Bishnoi, MD, and CEO of Mahindra Manulife Mutual Fund said that the best thing about this policy announcement is to maintain a liberal attitude for the betterment of all.

Ravindra Sudhakar, CEO of Reliance Home Finance, said the Reserve Bank’s move to rationalize risk on housing loans was welcome.

Spikeer Lifestyle CEO Sanjay Vakharia said that as rates are unchanged, high inflation is definitely a matter of concern. We look forward to a better revival of business in smaller cities.

Banking and finance sector experts have also agreed with RBI’s decision. HDFC Bank Chief Economist Abhik Barua said that this policy announcement has been kept as generous as possible without cutting rates.

Bandhan Bank Chief Economist and Head of Research Siddharth Sanyal said RBI’s hands were tied. Yet she has reiterated her commitment to supporting her return to the path of increased growth.

With the decision of the Reserve Bank of India (RBI), the rate of large home loans has come down. On Friday, RBI asked to link the limit of risk weight to be kept in lieu of large home loans with loan to value.

At present, the risk weight of the home loan is determined according to the loan amount and loan to value (LTV). This means that if the loan amount is higher, the risk weight will be higher.

Now the amount of loan will not be included in its calculation, rather it will be decided according to the loan to value only.

With this, banks will now be able to open large home loans and their interest rates will also come down due to reduced risk weightage. This will apply to the new home loan and will remain in effect till March 31, 2022.