InvestorQ : What are the key measures taken by the RBI to boost the realty sector and do you expect it to benefit the stocks like DLF and Prestige Estates?
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What are the key measures taken by the RBI to boost the realty sector and do you expect it to benefit the stocks like DLF and Prestige Estates?

Answer
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Anamika Sodhani answered.
7 months ago


With the real estate under severe strain in the last few years, the RBI announced a string of measures to boost the real estate sector. To begin with, RBI decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters. These loans will be extended by another one year without downgrading the asset classification. This is broadly in line with treatment accorded to other project loans for non-infrastructure sector. This would complement the initiatives taken by the Government of India in the real estate sector. In addition, the government has also declared that banks that lend to realty sector can deduct such loans from their net demand and time liabilities (NDTL) definition for the purpose of calculating the CRR. This should also be beneficial.