RBI proposal of higher provisioning for under-construction projects will hurt affordable and mid-segment housing: Experts

New Delhi [India], May 10 (ANI): The Reserve Bank of India's (RBI) proposal to set aside 5 per cent of the loan for construction projects, which is significantly higher than the 0.4% that it used to be earlier, has raised the concerns of the builders. The proposal, however, also provisioned it to be lowered to 2.5% when the project becomes operational and 1% when certain levels of cash flows are achieved.

Real estate cons