In a further blow to the dampened Diwali spirit of the realty sector, the RBI raised interest rates on today but said it was likely to hold off on further increases as it expects high inflation to ease beginning in December.
The repo rate hike by the Reserve Bank of India (RBI) by 25 bps seems to have spoiled the festive spirit of the real estate sector.
Non-banking finance companies (NBFCs) may soon be asked to raise the bar and adopt the tough asset classification criteria that banks currently use to identify bad and dodgy loans on their books.
A number of factors are taken into account when assessing your repayment capacity for the Pre approval of the loan.
The Reserve Bank of India has laid out strict and tedious due diligence standards for banks in sanctioning loans to the real estate sector.
Alarmed by inflated valuations of real estate properties for the purpose of loans, the Reserve Bank of India has asked all banks to submit an action-taken report on the issue.
The real estate sector has posed “some concerns” given the large and growing share of these loans in the credit portfolio of banks.
The decision on allowing external commercial borrowings (ECBs) for the real estate sector still hangs fire with the Finance Ministry and the Reserve Bank of India holding opposing views.
The Lucknow bench of the Allahabad high court will hear the Sahara Group versus Securities and Exchange Board of India (SEBI) case only after the capital markets regulator completes its probe.
The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Manipal Co-operative Bank Ltd., Manipal, Karnataka for violating RBI directives by granting loans for real estate purpose exceeding the single party exposure limit of 15 per cent of its capital funds.