RBI has asked banks to bring in more financial innovation into the home loan products and deposits induced by way of savings.
Speaking at a Real estate banking conclave, R Gandhi, Deputy Governor at RBI said, "There needs to be financial innovation with respect to loan products and one such product would be savings induced to home loan or a home loan deposit."
According to him, "Savings can be induced to generate savings balance by way of monthly or periodic deposits. This will serve as a track record for future home loan products and once it reaches a certain balance, the financial institution can consider sanctioning and the balance in the account would act as collateral against the loan to the customers."
Gandhi said the RBI will also periodically review the definition of affordable housing to account for inflation,
Further, he mentioned of internalising the credit risk originating in the housing sector, particularly the low-ticket housing segment, through proper insurance schemes for banks and other institutions.
Gandhi asked various stakeholders to ensure timely completion and delivery of projects without escalating the costs. In addition, he highlighted the need to develop an elaborate system for collecting data on real estate and housing activity to facilitate informed policy decisions.
Amid many demands from the real estate industry with regards to funding from banks, Gandhi also asked them to moderate their expectations as the banks are ultimately the trustees of public money and it needs to be used efficiently to all sectors.
On the differential licensing, Gandhi said the central bank intends to issue the final guidelines in this financial year after analysing comments and suggestions called from various stakeholders.
On asking if state-owned India Post will apply for the licence, he said, it is in the hands of the Government and it has to approve them so that thy can apply to the RBI.