rbi news – Page 2 – FindMyProperty

Bank should extend the benefit of lower interest rates beyond the retail sector, indicating that investors should cut the cost of loans for companies. Banks had benefited from RBI’s reduction in policy rates as well as the inflow of low-cost deposits in current and savings accounts in November and December. The average lending rate reduction (by banks) has been less.

As sustained by RBI, as well as the government, banks have pocketed the gains of the rate reduction and only in late December after a prod by the Centre the banks pared their benchmark rate by up to 90 basis points. But the reduction for home loans was lower and for other categories even lower.

The main focus of the bankers as they believed that lower rates could encourage demand was more on the retail segment, unlike the corporate sector which is besieged by a combination of excess production capacity and a high level of debt.

Real Estate Sector seems to have taken a big hit from demonetisation, with builders seeing their sales drop in last three months and now holding their hopes on buyers coming to market with ‘white money’.

Buyers appear to be holding back their purchase plans on hopes that interest rate would fall and property prices would be fall post demonetisation in residential sector, which some see as a cleansing of a sector infected with prohibited funds. As per industry data, resale or secondary market, where maximum black money gets deposit, has been worst-affected as transaction almost dried up and barring some interest in trademark properties, due to lack of cash after fighting of old 500 and 1000 notes.

Though, many builders and property experts also said it is too early to say that black money has been completely removed from the sector though it has become especially difficult to effect cash transactions as of now. But previous year have been many policies with RERA (Real Estate Regulatory Act), Benami Properties Act and low circle rate, would be help in destroying black money in real estate sector to a great scope and improve the industry value.
Due to demonetisation, in primary and secondary market, were affected during November and December as buyers postponed their buying decisions not only in real estate but across the entire sector. Sales in the primary market have started to improve, with banks lowering interest rates on home loans, in NCR Market, which huge delay in projects completion. Real Estate Market will become totally transparent.