RBI doubles direct finance to housing sector by RRBs

Mumbai, Aug 16 (UNI) In order to bring the Regional Rural Banks (RRBs) on par with commercial banks, Reserve Bank of India (RBI) has instructed RRBs to extend direct finance upto Rs 20 lakh to the housing sector, irrespective of area.

The Central Bank today said in a circular that the RRBs has been permited to extend the limits of direct finance to the housing sector from Rs10 lakh to Rs 20 lakh.

Earlier, the RRBs were permitted to extend direct finance to the housing sector upto Rs 10 lakh in the rural and semi-urban areas as the part of priority sector lending, with the approval of their boards.

UNI