<p>Mumbai: Reserve Bank Governor Shaktikanta Das on Thursday said surge in top-up housing loans is not a system-wide issue but confined to few entities.</p>.<p>Briefing media after the announcement of bi-monthly monetary policy review, Das said, "regulatory requirements in top-up housing loans are not being followed by certain entities and it is not a system-level problem." Such cases are being dealt at the supervisory level bilaterally, he said.</p>.<p>Banks and NBFCs have also been offering top-ups on other collateralised loans like gold loans.</p>.RBI keeps policy interest rates unchanged for 9th time in a row.<p>"Such practices may lead to loaned funds being deployed in unproductive segments or for speculative purposes. Banks and NBFCs would, therefore, be well-advised to review such practices and take remedial action," he said.</p>.<p>Therefore, he said, banks should adhere to regulatory prescriptions relating to loan-to-value (LTV) ratio, risk weights and monitoring of end use of funds with regard to top-ups.</p>.<p>Das further said that the divergence between loan and deposit growth may create asset liability mismatch or liquidity management issue.</p>.<p>It may potentially expose the banking system to structural liquidity issues, he said.</p>.<p>He urged banks to mobilise deposits through innovative products and services by leveraging their vast branch network.</p>.<p>On inflation, Das said, it is moderating but the pace of disinflation is uneven and slow.</p>.<p>Pinning hopes on monsoon, which is 7 per cent higher than long-term average so far, the Governor said, it will have a good impact on Kharif output as well as Rabi because of improvement in moisture content in the soil. </p>
<p>Mumbai: Reserve Bank Governor Shaktikanta Das on Thursday said surge in top-up housing loans is not a system-wide issue but confined to few entities.</p>.<p>Briefing media after the announcement of bi-monthly monetary policy review, Das said, "regulatory requirements in top-up housing loans are not being followed by certain entities and it is not a system-level problem." Such cases are being dealt at the supervisory level bilaterally, he said.</p>.<p>Banks and NBFCs have also been offering top-ups on other collateralised loans like gold loans.</p>.RBI keeps policy interest rates unchanged for 9th time in a row.<p>"Such practices may lead to loaned funds being deployed in unproductive segments or for speculative purposes. Banks and NBFCs would, therefore, be well-advised to review such practices and take remedial action," he said.</p>.<p>Therefore, he said, banks should adhere to regulatory prescriptions relating to loan-to-value (LTV) ratio, risk weights and monitoring of end use of funds with regard to top-ups.</p>.<p>Das further said that the divergence between loan and deposit growth may create asset liability mismatch or liquidity management issue.</p>.<p>It may potentially expose the banking system to structural liquidity issues, he said.</p>.<p>He urged banks to mobilise deposits through innovative products and services by leveraging their vast branch network.</p>.<p>On inflation, Das said, it is moderating but the pace of disinflation is uneven and slow.</p>.<p>Pinning hopes on monsoon, which is 7 per cent higher than long-term average so far, the Governor said, it will have a good impact on Kharif output as well as Rabi because of improvement in moisture content in the soil. </p>