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Posts Tagged ‘Reserve Bank of India’

RBI introduced a ceiling on “loan to value”

Tuesday, November 2nd, 2010

Home buyers can now avail only 80 per cent of the value of a house as home loan, when they buy their dream house.This comes after the RBI introduced a ceiling on “loan to value” ratio for home loans. The RBI has also clamped down on teaser home loan rates.

The central bank has said that the loan to value ratio for home loans cannot exceed 80 per cent. The Home buyers will have to pay the 20 per cent of the value of a house as housing loan from their own pocket. The RBI has also said that teaser rate loans present higher risk to banks. The RBI has increased the standard asset provisioning on teaser loans to 2 per cent from 0.4 per cent.

The Reserve Bank of India has sounded a cautious note as far as property prices are concerned. The RBI had noted that residential property prices have been rising in most cities, especially in Delhi and Bangalore.

Now, getting a home loan becomes harder and Home buyers can now avail only 80 per cent as housing loan. They will have to pay the remaining 20 per cent from their own pocket. Till now, new borrowers could avail home loans at lower rates of 8 per cent for a fixed number of years.The RBI has also clamped down on teaser home loan rates and said that teaser rate loans raise concerns as borrowers may not have the ability to service loans.

Source: profit.ndtv.com

RBI to extend banking hours and conduct a special clearing on March 30 and 31

Tuesday, March 30th, 2010

To facilitate receipt of taxes from the public the Reserve Bank of India(RBI), Bangalore, and branches of agency banks conducting government business will remain open up to 5.30 pm on March 30 and March 31.

To realize and credit clearing instruments received from the public by March 31 , a special clearing will be conducted on March 30 and 31.

The Reserve Bank of India, Bangalore, and branches of agency banks conducting government business will remain open up to 5.30 pm on March 30 and March 31 to receive cash, deposits, cheques and instruments representing government taxes.