With economic activity coming to a virtual standstill, in the wake of the 40-day lockdown imposed by the government to contain the Coronavirus pandemic, the Reserve Bank of India on April 17, 2020, announced a slew of measures to boost liquidity in the system and expand credit. The central bank’s decision to reduce reverse repo rate by 25 basis point and additional liquidity for the National Housing Bank (NHB) will also accelerate and facilitate bank credit flows towards to the beleaguered sector in the wake of Covid19 crisis.
RBI today announced several additional measures to accelerate the economy and facilitate bank credit flows in Lockdown 2.0. Among the various measures announced, commendably its allotment of INR 10,000 crore to National Housing Bank is a big move for the real estate sector reeling under the liquidity crisis. Developers feel that after the extension of the nationwide lockdown in view of the Coronavirus pandemic, some slowdown in the economy was inevitable. The real estate sector, among others, will also not remain immune to the challenge and hence the industry was looking forward to concentrated efforts by the government.
Mr. Pradeep Aggarwal, Founder and Chairman – Signature Global India Pvt. Ltd., and Chairman – ASSOCHAM, National Council on Real Estate, Housing and Urban Development, “Developers say that infusion of liquidity in the market is of utmost importance and the latest announcement will definitely help the economy. “This time the RBI has addressed the realty sector too, which is a clear indication that the government understands the importance of the second largest employer in India. All the economic machinery has to work together to make sure the country comes out of this conundrum as soon as possible.