In a circular addressed to Chiefs of all banks and Development Financial Institutes (DFIs) here on Monday , the Central Bank clarified that with a view to promote the low cost housing for low income segment of population of the country, the limit of 10 percent notified through a circular of Jan 02, 2014 will not be applicable on financing under Government Housing schemes and initiatives.
By linking exposure with the advances and investments (net of Government Securities), a substantial cushion is available to the banks for promoting housing finance.
All other instructions will remain unchanged, the circular said.