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RBI cuts risk weight on new sub-section of residential housing

Source : REUTERS
Last Updated: Fri, Jun 21, 2013 12:09 hrs
Reserve Bank of India logo is pictured outside its head office in Mumbai

The Reserve Bank of India lowered the risk weight on a new sub-category of commercial real estate for residential housing to 75 percent from 100 percent earlier, it said in a notification on Friday.

The central bank carved out a new sub-sector -- commercial real estate-residential housing for loans to builders and developers of residential housing projects.

It also brought down the standard asset provisioning for the new residential housing segment to 0.75 percent from 1 percent.

In addition, the central bank also eased the prudential rules on risk-weight, provisioning for individual housing loans, for both residential and commercial real estate.

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