The RBI has approved a long pending demand of the real estate sector to allow one-time restructuring of loans
MUMBAI, Aug 6, 2020: The RBI has approved a long pending demand of the real estate sector to allow one-time restructuring of loans.
Rajan Bandelkar, President, NAREDCO West said: “This will boost the much-needed liquidity and streamline stressed assets in the real estate sector. But this restructuring comes with a stipulation and It will be implemented by March 31, 2021.”
It would have been an icing on the cake, had the RBI considered the net worth positive projects and allowed one-time restructuring for all the projects, which were held up, Bandlekar pointed out.
The move will upscale the efforts of the realtors to revive the housing demand by selling-off unsold housing inventories too, he said.
Another Rs 10,000 crore window facilitated through the National Housing Bank & NABARD will shield the housing sector from liquidity disruptions and will augment the flow of finance to the sector through housing finance companies.
This provision will reduce the stress being faced by smaller non-bank finance companies and micro-finance institutions in obtaining access to liquidity, he added.