Co-operation Minister Amit Shah said on Thursday that the RBI’s move to relax standards for co-operative banks for housing loans would give impetus to the government’s goal of providing affordable housing to the people.
The Reserve Bank of India (RBI) on Wednesday announced a series of measures for the cooperative banking sector and allowed rural cooperative banks to lend to the commercial property and residential housing sectors.
Referring to the RBI’s decision to allow Rural Cooperative Banks (RCBs) to lend to the commercial property and residential housing sector, the Minister said, “With this significant decision, the reach of our Rural Cooperative Banks will increase further”.
“Along with this, the resolve to give people affordable homes will also gain momentum,” Shah said in a series of tweets.
Among other key decisions, the RBI doubled the limit on individual housing loans for urban cooperative banks and more than doubled for rural cooperative banks.
The individual housing loan limit for Urban Cooperative Banks (UCB) Tier I has been increased from Rs 30 lakh to Rs 60 lakh, for UCB Tier 2 from Rs 70 lakh to Rs 1.40 crore and the limit of RCB has been increased from Rs 20 lakh and Rs 30 lakh to Rs 50 lakh and Rs 75 lakh, respectively, he said.
In the third decision, the minister said, the RBI allowed city co-operative banks to provide home banking services to their customers.
“With this decision, cooperative banks will get a level playing field in competitive banking and they will be able to provide door-to-door banking services to their customers like other banks,” he added.
The Minister also mentioned that the cooperative sector has immense potential for the development and empowerment of farmers, agriculture and rural areas of the country.
“Therefore, under the leadership of Prime Minister Shri @narendramodiji, the central government is continuously working to strengthen the cooperative sector with the mantra of ‘Sahakar Se Prosperity’,” Shah tweeted.