Realty prices may pose risk to banking system: RBI

The strong demands for housing and home finance in India are likely to maintain pressure on the real estate prices. The elevated prices along with non transparency may lead asset bubble in the market and pose risk to banking system, says RBI Deputy Governor, Rakesh Mohan. In view of the expected high demand, pressure on real estate prices may continue. RBI has also noted lapses in the implementation of banks’ own approved policies while lending.

Tags: india, rates, real estate prices