RBI raises housing loan limit for individuals
The Reserve Bank of India on Tuesday raised the limit of bank loans to individuals for housing (with a lower risk weight of 50 per cent) to Rs. 30 lakh from Rs. 20 lakh. This move is expected to reduce the cost funds of housing loans up to Rs. 30 lakh. Presenting the Annual Policy Statement for 2008-09, RBI Governor Y. V. Reddy said banks were asked to pass on this benefit to applicants for home loans. The RBI also relaxed asset classification norms for credit to infrastructure projects. Standing committee The RBI stated that it will introduce currency futures in eligible exchanges in consultation with the Securities and Exchange Board of India (SEBI). The broad framework is expected to be finalised by the end of May. An RBI-SEBI standing technical committee has been set up to advice on the operational aspects with regard to the trading of currency futures on the exchanges. In order to promote an incentive system for greater flow and efficient allocation of credit, an internal working