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Guidelines on Commercial Real Estate (CRE)

RBI/2011-12/245
DBOD.BP.BC.No. 45 /08.12.015/2011-12

November 3, 2011

All Scheduled Commercial Banks
(excluding RRBs )

Dear Sir,

Guidelines on Commercial Real Estate (CRE)

Please refer to the circular DBOD.No.Dir.(Hsg).BC.31/08.12.001/2009-10 dated August 27, 2009 on ‘Finance for Housing Projects’. Banks were advised, inter-alia, to stipulate a clause, in the terms and conditions of granting finance to specific housing/development projects, regarding disclosure of mortgage of property to the bank in the Pamphlets / Brochures/ Advertisements etc., which may be published by developer/owner inviting public at large to purchase flats and properties.

2. On a review, it has been decided that the provisions contained therein will be, mutatis-mutandis, applicable to Commercial Real Estate also.

Yours faithfully,

(Deepak Singhal)
Chief General Manager-in-Charge

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