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RBI-Priority Sector Lending-Indirect Finance to Housing Sector
April, 27th 2012

RPCD.CO.Plan.BC.73 /04.09.01/2011-12

April 25, 2012

The Chairman/Managing Director/
Chief Executive Officer
[All Scheduled Commercial Banks (excluding Regional Rural Banks)]

Dear Sir/ Madam,

Priority Sector Lending-Indirect Finance to Housing Sector

Please refer to paragraph 6.4 of our Master Circular RPCD.CO.Plan.BC.10/04.09.01/2011-12 dated July 1, 2011 on lending to priority sector.

2. Pursuant to the announcement made by Union Finance Minister in the Union Budget for the year 2012-13, it has been decided to increase the limit from Rs.5 lakh to Rs.10 lakh for the bank loans extended to non-governmental agencies, approved by NHB for their refinance, for on-lending for the purpose of construction/reconstruction of individual dwelling units or for slum clearance and rehabilitation of slum dwellers.

3. The revised limit is applicable to the bank loans sanctioned from the date of this circular.

Yours faithfully,

(C. D. Srinivasan)
Chief General Manager

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