Co-operative banks are not very enthused with the Union Cabinet’s proposal to enlist them as well as urban cooperative banks in achieving government goal of “Housing for all by 2022”.
Talking to Indian Cooperative the Managing Director of the apex body of cooperative banks NAFSCOB Mr Bhima Subramaniyam said that cooperative banks would very much like to be part of the mission but certain limitations imposed on them would not allow full exploitation of the opportunity.
Limitation of the amount that we can give as loan and our limited areas of operation somewhat stop us from going full throttle, said Bhima. Even in the case of renovation of a house we are hemmed in by RBI guidelines, he rued.
RBI directives are very clear that co-op banks are going to have only limited exposure to the housing sector, MD remarked.
Readers would recall that the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi gave its approval for launch of “Housing for All by 2022” aimed for urban areas on Wednesday. The proposal envisages slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource.
It also aims at promoting affordable housing for weaker section through credit linked subsidy. Along with commercial banks the support of co-op banks and UCBs has also been sought.