In a major development at the RBI (Reserve Bank of India) MPC (Monetary Policy Committee) meeting, the repo rate has been kept unchanged. Shaktikanta Das, the RBI Governor, announced that the RTGS (Real Time Gross Settlement) system will be available on a 24-7 basis for 365 days in a year. This will greatly boost the ease of doing business in the country since most high value transactions in the country are done through this system.
The stance of the RBI has remained the same as well after the meeting while the apex bank has also scaled up the retail portfolio limit to Rs. 7.5 crore from Rs. 5 crore for Indian banks. The risk weightage has also undergone rationalization courtesy the RBI till 31st March, 2022. The RBI is also anticipating 3-speed recovery in the economy in tandem with variations across multiple sectors.
Shaktikanta Das has also stated that capacity utilization may be possible for the manufacturing sector only in the third quarter while power, pharmaceuticals, consumer goods and agriculture should witness swifter recovery in comparison. Das has also opined that the real GDP (gross domestic product) for the current financial year may see 9.5% contraction while the connection between risk weightage and LTV (loan to value) ratio will boost the sector, majorly for high-end real estate units which have seen a sharp fall in demand. High value loans in the housing sector should become comparatively reasonable with rationalization of risk weightage.
The Chief Executive Officer at Square Yards, Tanuj Shori, has opined that the increase in retail exposure to Rs. 7.5 crore from Rs. 5 crore will be a major boost for both individuals and businesses alike. Shaktikanta Das has also emphasized upon silver linings steadily becoming visible for the economy which has now moved past the sizable contraction seen for the quarter between the months of April and June. Manufacturing is picking up while energy consumption has also increased likewise. The RBI has also unveiled its On Tap TLTRO system for offering liquidity support to multiple Indian banks and economic sectors. This 1 lakh crore scheme will focus on revival of the economy in specific business segments while the extension of the co-lending scheme for NBFCs and HFCs is another positive step as per industry experts.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.