VERDICTÂ – RBI slashes reverse repo rate cut by 25 basis points
New Delhi, April 17, 2020: ”In the wake of the Covid-19 crisis, the RBI’s announcement to reduce reverse repo rate by 25 basis points and additional liquidity for National Housing Bank will accelerate and facilitate bank credit flows towards the already stressed real estate sector. The allotment of Rs 10,000 crore to National Housing Bank will provide capital to HFCs and eventually provide major relief to developers battling liquidity issues in COVID-19 times. It is a welcome move and will offer liquidity to spice up the nationwide financial system. The banks should immediately transmit rate cuts to consumers and bring down home loan interest rates to 6%. This will help to push home buying and offset salary cuts that employees would be facing in the near future to prevent NPA. Also, additional measures such as one-year moratorium for commencement of business operations (DCCO) of project loans for real estate projects that are delayed for reasons beyond the control of promoters is a major relief and will provide much-needed aid to cash-starved builders.”
Corporate Comm India (CCI Newswire)
