RBI urges states to facilitate affordable housing projects

Reserve Bank of India Governor Urjit Patel on Wednesday urged states to facilitate affordable housing projects which have a strong multiplier effect on boosting growth.

"I think, we need a time bound, single window clearance by state governments of this very important initiative, which has the potential for growth," Patel told reporters here following the announcement of the RBI's third bi-monthly monetary policy review.

The central government's Pradhan Mantri Awas Yojana aims at housing for all by 2022.

"We have mentioned that we could have stronger growth performance if some of these things are taken forward, in particular removing infra bottlenecks, finding measures to reinvigorate private investment, and provide thrust to affordable housing initiative of the government, which has a potential for very strong multiplier effects," Patel said.

"Fair number of pieces of the jigsaw are already in place," he added.

The RBI on Wednesday cut its repo, or short-term lending rate for commercial banks, to 6 per cent from 6.25 per cent.

Given the urgent need to reinvigorate investment in India, the falling trajectory of core inflation over the last quarter opened up room for the 25 basis points cut in the central bank's key interest rate, Patel said.

--IANS

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