By Accommodation Times Bureau
Reserve Bank of India’s decision to cut in Cash Reserve Ratio (CRR) realty sector has warm welcomed it. The move will help to get better the liquidity position of all sectors including realty sector, as well as cited that interest rates should be reduced to shoot up the housing demand.
The cut in CRR will bring in liquidity, which will help to falling real estate sector.
In its 3rd Q review of the monetary policy RBI has injected Rs 32,000 crore into the system by lowering the CRR by 50 basis point.
Pradeep Jain, Chairman, Parsvnath Developers Limited and Chairman, Confederation of Real Estate Developers’ Association of India (CREDAI) said that, “RBI, in its Credit Policy Review has attempted to do a delicate balancing act between the need for growth and urgency of containing price line. In the end it has acted with caution by keeping all rates unchanged and just by reducing Cash Reserve Ratio (CRR) by 50 bps. The tokenism has seen release of Rs 32000 crore for the banking sector to lend. After the negative impact created by thirteen continuous rate hikes, this will prove insufficient to boost the growth. “
Proper Equity has recently reported that 45 per cent of the housing projects in NCR, Mumbai and Bangalore are facing delays due to the paucity of funds and lack of demand.