Banks not passing rate cut benefits to borrowers, developers: CREDAI to RBI

RBI has directed the banks to link floating rates on housing loans to external benchmarks

Realtors' association CREDAI has written a letter to RBI, complaining that banks are not passing lower rate benefits to home loan borrowers and cash-starved developers.

The association requested RBI Governor Shaktikanta Das to direct banks to pass on the rate cuts to non-banking finance companies (NBFCs) and housing finance companies (HFCs), which are the major source of funds for real estate developers.

In its letter to the Reserve Bank, CREDAI said that the central bank has taken various steps to infuse liquidity in the system during this current crisis, including reduction in repo rates and reverse repo rates and providing