Mumbai, Feb 6 : The Reserve Bank of India (RBI) on Thursday said it will not downgrade commercial real estate loans, if the delay is genuine. It will be in line with the treatment accorded to other project loans for the non-infrastructure sector.
The central bank said it will issue revised regulations for housing finance companies (HFCs ) by the end of February. Till such time, HFCs will continue to comply with the directions and instructions issued by NHB, it said. Since August 9, the regulation of HFCs has been transferred from National Housing Bank (NHB) to Reserve Bank.
The RBI is carrying out a review of the extant regulatory framework applicable to HFCs. ''It has been 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, by another one year without downgrading the asset classification,'' RBI said.
The detailed instructions will be issued shortly, the apex bank said. The development will complement the initiatives taken by the government to revive the real estate sector. (UNI)