Prominent figures in the real estate sector are expressing positive sentiments regarding the Reserve Bank of India’s recent decision to reduce the Cash Reserve Ratio (CRR). They anticipate that this reduction will facilitate enhanced liquidity flows within the realty sector, thereby accelerating project completion timelines. Furthermore, the CRR cut is believed to have the potential to invigorate the real estate market, especially if accompanied by a corresponding drop in interest rates on loans.
Industry leaders such as Mr. Pradeep Jain, Chairman of Parsvinth Developers, Mr. Rohtas Goel, Chairman and Managing Director of Omaxe, and Mr. Punit Beriwala, Managing Director of Vipul Ltd, have all expressed their support for the RBI’s initiative. They contend that this move is pivotal to not only reviving but also stabilizing the market, with hopes that it could lead to a decrease in loan interest rates.
On the flip side, Mr. Parry Singh, Managing Director of Red Fort Capital, has raised a crucial point. He emphasizes that for this CRR adjustment to be beneficial, the RBI must effectively balance liquidity provision while also managing inflation, whether through adjustments in CRR or Statutory Liquidity Ratio (SLR).