Concerned that excessive lending for home loans and rising realty prices may create a financial crisis, RBI today directed banks to keep more funds aside as a cushion for advances of Rs. 75 lakh and above, sending realty stocks into a tailspin. Thus, banks will now have to keep more money aside for giving housing loans. Bankers indicated that home loan rates may not go up immediately.
News On AIR | November 2, 2010 9:04 PM
RBI directs banks to allocate more funds for housing loans