With a view to upholding the principle of egalitarianism and affordability in housing development for the disadvantaged groups in big cities, the RBI has called upon the urban cooperative banks to increase the limit for home loans under priority sector lending.
According to the apex bank, poor people and slum dwellers can now avail themselves of a home loan to the tune of Rs 10 lakh.
The RBI has also asked commercial and other banks to help the poor with loans upto 10 lakh.
As per the RBI circular, all banks have to give 40 percent of the total credit to the priority sector lending.
Observers see this as the RBI responding to the challenge of a shortage of basic built up accommodation facing the weaker sections of society in the cities.