RBI governor Shaktikanta Das said on Friday during the MPC review meet that the risk weights for individual housing loans were rationalised in October 2020 by linking them only with loan to value (LTV) ratios for all new housing loans sanctioned up to March 31, 2022.
Recognising the importance of the housing sector and its multiplier effects, it has been decided to extend the applicability of these guidelines till March 31, 2023. This will facilitate higher credit flow for individual housing loans.
With a view to enabling banks to better manage their investment portfolio during 2022-23, RBI has decided to enhance the present limit under Held to Maturity (HTM) category from 22% to 23% of NDTL till March 31, 2023. RBI has decided to allow banks to include eligible SLR securities acquired between April 1, 2022, and March 31, 2023, under this enhanced limit.
The HTM limits will be restored from 23%to 19.5% in a phased manner starting from the quarter ending June 30, 2023.
A discussion paper on ‘Climate Risk and Sustainable Finance’ will be published shortly for feedback.
“Despite the sharp jump in crude oil and other commodity prices, we expect the 8% current account deficit to remain at sustainable levels which can be financed with normal capital flows. Our foreign exchange reserves stand at $606.5 billion as on April 1, 2022. The RBI remains committed to maintaining orderly conditions in the domestic financial markets,” Das said.
