RBI to enhance Housing Loan Limits for RRBs and SFBs

The Reserve Bank of India (RBI) has decided to enhance the housing loan limits for Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) for eligibility under priority sector lending, in a bid to give them a level playing field with other Scheduled Commercial Banks.

Details:

• RBI said that the existing family income limit of Rs. 2 lakh per annum, prescribed in the master direction for RRBs and the compendium for SFBs, eligible for loans to housing projects exclusively for the purpose of construction of houses for Economically Weaker Sections (EWS) and Low-Income Groups (LIG), has been revised to Rs. 3 lakh per annum for EWS and Rs.6 lakh per annum for LIG.
• Housing loans to individuals up to Rs.35 lakh in metropolitan centres and Rs.25 lakh in other centres will be eligible for classification under Priority Sector Lending.
• This is in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana.

About Priority Sector Lending:

• Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.
• This is essentially meant for all-round development of the economy as opposed to focusing only on the financial sector.
• Priority Sector includes the following categories:
• Agriculture
• Micro, Small and Medium Enterprises
• Export Credit
• Education
• Housing
• Social Infrastructure
• Renewable Energy
• Others

Question:

Q. Who has decided to enhance the housing loan limits for Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) for eligibility under priority sector lending?
a. Reserve Bank of India (RBI)
b. Securities and Exchange Board of India (SEBI)
c. NITI Aayog
d. Ministry of Finance