RBI directs banks to enhance individual housing loan limits for eligibility under PSL

The Reserve Bank of India (RBI) has directed banks to enhance the housing loan limits for eligibility under priority sector lending (PSL) to Rs 35 lakh in metropolitan centres (with population of ten lakh and above) and Rs 25 lakh in other centres.

Earlier, loans to individuals up to Rs 28 lakh in metropolitan centres and Rs 20 lakh in other centres, were eligible to be classified under priority sector, provided that the cost of dwelling unit does not exceed Rs 35 lakh and Rs 25 lakh, respectively.

Meanwhile, the 15th Finance Commission will meet RBI Governor Shaktikanta Das and representatives of banks and financial institutions during its two-day visit to Mumbai beginning May 8, according to an official statement.

The commission, chaired by N K Singh, will discuss issues concerning macro-economics, financial stability and cost of borrowing of the Centre and states with the Reserve Bank.

The other issues which are expected to come up during the deliberation include market driven borrowing cost and debt trajectories of states.

The commission will also discuss the issues concerning recapitalisation of banks, and possible scenarios of the Bimal Jalan committee report on surplus capital available with the RBI for transfer to the government, the statement said.

It will also discuss RBI's own assessment of the dividends and surpluses that can be transferred to the government.

With the banks and financial institutions, the commission will discuss issues concerning recapitalisation of banks and their impact on the cost of borrowing of the Centre as well states.

The meeting is slated be attended by officials of State Bank of India, Bank of Baroda, Bank of India, Bank of Maharashtra, Central Bank of India, Union Bank of India, Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and IDBI Bank.

With PTI Inputs