RBI Monetary Policy : New measures introduced for co-operative banks

The Reserve Bank of India (RBI) on June 8 announced three regulatory measures for both urban and rural co-operative banks.

As one of the primary measures, the RBI has increased the limits of housing loan disbursed by the banks in both rural and urban sector.

“The limits for individual housing loan being extended by urban co-operative banks and rural co-operative banks, which are basically state co-operative banks and district central co-operative banks, which were last fixed in 2011 and in 2009 respectively, are being revised upwards by over 100 per cent, taking into account the increase in house price,” RBI governor Shaktikanta Das announced during the bi-monthly monetary policy meeting today.

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Along with this, the rural co-operative banks will now be allowed to extend finance to commercial real estates. “This will basically be loans for residential housing projects within the existing aggregate housing finance limit of 5 per cent of their total assets,” added Das in his address.

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As per the statement of the RBI governor, such measures will ensure better flow of credit to the housing sector.

Moreover, the measures will also include introduction of doorstep banking to meet the needs of their customers by the urban co-operative banks.