RBI/2011-12/527
RPCD.CO RRB. BC.NO.74 /03.05.33/2011-12

April 27, 2012

The Chairmen
All Regional Rural Banks (RRBs)

Dear Sir,

Priority Sector Lending-Indirect Finance to Housing Sector

Please refer to paragraph 7.4 of our circular RPCD.No. RRB.BC.20/03.05.33/2007-08 dated August 22, 2007 on lending to priority sector.

2. Pursuant to the announcement made by Union Finance Minister in the Union Budget for the year 2012-13, it has been decided to increase the limit from Rs.5 lakh to Rs.10 lakh for the bank loans extended to non-governmental agencies, approved by NHB for their refinance, for on-lending for the purpose of construction/reconstruction of individual dwelling units or for slum clearance and rehabilitation of slum dwellers.

3. The revised limit is applicable to the bank loans sanctioned from the date of this circular.

4. Please acknowledge receipt of the circular to our Regional Office concerned.

Yours faithfully,

(C. D. Srinivasan)
Chief General Manager