India: RBI'S Additional Measures Provide Hope to Developers

India: RBI'S Additional Measures Provide Hope to Developers

Anuj Puri 17/04/2020 5
India: RBI'S Additional Measures Provide Hope to Developers

In a major move to boost liquidity in the market, the RBI today announced several additional measures to accelerate the economy and facilitate bank credit flows in Lockdown 2.0.

Among the various measures announced, commendably its allotment of INR 10,000 crore to National Housing Bank is a big move for the real estate sector 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.

Further, RBI has reduced the reverse repo rates by 25 bps – it now stands at 3.75%.

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.

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

This is indeed a big move and will bring much-needed relief to cash-starved developers.

It will help in easing out time for maintaining and managing cash flows for these developers.

Share this article

Leave your comments

Post comment as a guest

0
terms and condition.
  • Craig Dillon

    Major boost for the Indian economy

  • Jake Thomas

    Bold move !

  • Mike Russell

    Thanks for the info

  • Scott Tulloch

    Promoters won't be stressing anymore...

  • Paul Hale

    Interesting stuff

Share this article

Anuj Puri

Real Estate Expert

Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.

   

Latest Articles

View all
  • Science
  • Technology
  • Companies
  • Environment
  • Global Economy
  • Finance
  • Politics
  • Society