Tag: RBI

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RBI Cuts Repo Rate to 5.25%, Boosting Real Estate Growth

NEW DELHI: The Reserve Bank of India (RBI) has cut the policy repo rate by 25 basis points to 5.25%, indicating a shift towards monetary easing as inflation stabilizes at multi-year lows. This decision was made unanimously by the Monetary Policy Committee (MPC) during its 58th meeting held from December 3-5, 2025. With this rate cut, the standing deposit facility (SDF) rate is now at 5.00%, while the marginal standing facility (MSF) rate and the Bank Rate have been set to 5.50%. The MPC has also opted to maintain a neutral stance going forward. Growth Outlook Remains Strong India’s GDP…

Housing FinanceLatest Stories

Aviom India Housing Finance Promoter Offers Dues Settlement Amid Bids

KOLKATA | MUMBAI: The promoter of Aviom India Housing Finance has proposed a settlement plan to lenders to settle Rs 1,385 crore in debts over 26 months, including accrued interest, according to sources. Promoter Kajal Ilmi presented the proposal late Wednesday while the company is under insolvency proceedings initiated by the Reserve Bank of India (RBI). Six entities have expressed interest in takeover bids. The proposal includes an upfront payment of Rs 350 crore, with the remaining accrued interest to be paid within 24 months after the initial 26-month principal repayment. Ilmi’s plan outlines full payment to operational creditors and…

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RBI Exempts SWAMIH Fund from AIF Rules

BENGALURU: The Reserve Bank of India has announced a waiver of its stringent regulations concerning alternate investment funds (AIF) for a government-supported real estate rescue fund, as disclosed in a notification on Friday. The fund, named the Special Window for Affordable and Mid-Income Housing (SWAMIH), was established in 2019 to assist struggling real estate projects with debt financing for halted housing initiatives. SWAMIH is managed by SBICAP Ventures, a subsidiary of the government-owned State Bank of India, which is also a significant investor in the fund. Last year, the RBI mandated that banks and non-banking finance companies increase their provisions…

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RBI Could Allow Real Estate to Access Offshore Loans

A recent proposal to liberalize India’s foreign loan framework includes a change long resisted by former Reserve Bank of India (RBI) governors. This involves allowing external commercial borrowings (ECBs) in the real estate sector, a move that has faced opposition since the Asian Financial Crisis of 1997, which was partly fueled by foreign currency debts linked to property. Past RBI governors have remained cautious about the risks of foreign investments in the real estate market due to the financial turmoil in countries like Thailand, South Korea, and Indonesia. A detailed look at RBI’s draft ECB policy shows a willingness to…

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RBI Holds Rates Steady Amid Trump Tariff Uncertainty

MUMBAI: The Reserve Bank of India (RBI) has maintained its policy interest rate at 5.5% for the second consecutive time, citing concerns regarding tariff uncertainties. During the announcement of the fourth bi-monthly monetary policy for the current fiscal year, RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) unanimously opted to keep the short-term lending rate, known as the repo rate, unchanged at 5.5% with a neutral stance. Governor Malhotra indicated that while the rationalization of GST rates could have a moderating effect on consumption and growth, developments related to tariffs may hinder economic expansion in the latter…

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RBI Signs ₹3,472 Crore Deal for New Office at Nariman Point

Representative image MUMBAI: In a landmark transaction, the Reserve Bank of India (RBI) has finalized an agreement with Mumbai Metro Rail Corporation Ltd (MMRCL) to acquire a 4.2-acre plot at Nariman Point for ₹3,472 crore, which will house its new office complex. This year, the Wadia Group’s Bombay Dyeing and Manufacturing Company sold a 22-acre parcel in Worli to Goisu Realty, a subsidiary of Japanese developer Sumitomo, for ₹5,200 crore. MMRCL representatives stated that the sale deed for the Nariman Point plot was officially registered on September 5, allowing the central bank to progress with its new office complex in…

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RBI Holds Interest Rate Steady at 5.5%

MUMBAI: The Reserve Bank of India (RBI) has maintained the policy rate at 5.5% following three consecutive interest rate cuts, citing concerns over tariff fluctuations. In the announcement of the third bi-monthly monetary policy for the fiscal year, RBI Governor Sanjay Malhotra shared that the growth rate forecast for FY26 remains at 6.5%. The Monetary Policy Committee (MPC) unanimously opted to keep the short-term lending rate, or repo rate, steady at 5.5% with a neutral stance. Regarding inflation, the RBI Governor reduced the projection for the current financial year to 3.1%, down from the previous estimate of 3.7%. Since February…

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RBI Keeps FY26 Growth at 6.5%, Lowers Inflation to 3.1%

MUMBAI: The Reserve Bank of India announced on Wednesday that it is maintaining its GDP growth forecast for the current fiscal year at 6.5%, while reducing its inflation projection from 3.7% to 3.1%. During the release of the third bi-monthly monetary policy for 2025-26, RBI Governor Sanjay Malhotra noted that the favorable southwest monsoon, declining inflation, increasing capacity utilization, and supportive financial conditions are all contributing positively to domestic economic activity. The combination of strong monetary, regulatory, and fiscal policies, alongside significant government capital spending, is expected to drive demand. The services sector is predicted to maintain robust growth, particularly…

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NBFCs urge RBI for reduced risk weight on property loans

MUMBAI: Non-bank lenders are urging the central bank to reconsider certain regulations, including risk weights for products like loans against property (LAP). They argue that the risk profiles of these assets do not warrant being categorized alongside unsecured loans or standard mortgages. According to one source familiar with the matter, “Losses on LAP are considerably lower than those on housing loans, primarily due to heightened transaction risks in housing finance.” They feel risk weights for LAPs should be reduced or, at the very least, aligned with those of housing loans. In discussions with the Reserve Bank of India (RBI), non-banking…

Housing FinanceLatest Stories

Bank of Baroda Slashes Home Loan Rates by 40 bps for New Borrowers

Bank of Baroda has cut its home loan interest rates by 40 basis points for new applicants. The starting rate is now 8.00% per annum, down from the previous 8.40%. The adjusted rates, which depend on a borrower’s credit score, are available for new home loans and home improvement loans. Loans of ₹15 lakh and higher qualify for the updated rates, as announced in the bank’s press release. Additionally, the bank is providing a 0.05% per annum concession for female borrowers and a 0.10% reduction for those under 40 years old on new properties and home loan transfers. The bank…