The Presidents/Chief Executives,
All Banks/DFIs

Dear Sirs/Madam,

 

PRUDENTIAL REGULATIONS
HOUSING FINANCE IN RURAL AREAS &
AGRI FINANCING AGAINST URBAN PROPERTIES

Please refer to Prudential Regulations issued vide BPD Circular No 35 of 2003.

2. The following clarifications may be noted in respect of the above Regulations.

a) The banks/DFIs may also allow Housing Loans in the rural areas, under Prudential Regulations for Consumer Financing, provided all relevant guidelines/regulations on the subject are complied with by them.
b) The banks/DFIs may also accept urban property against agricultural financing, &/or financing to agriculturists, provided the lending banks are ready to accept the credit risks, associated with such transactions.

3. Other instructions on the subject will remain unchanged.

4. Please acknowledge receipt