The State Bank of India today suggested that the Reserve Bank of India should be the regulator for all home loans provided by banks or housing finance companies.
I see no justification for having a separate regulator for home loans. Perhaps the regulations of objective would be better served with RBI itself becoming the sole regulator for all loans including home loans, State Bank of India chairman,Pratip Chaudhuri said.
Banks account for more than two-thirds of total home loans disbursed in the country. A single regulator having the same rules for all players would help remove the regulatory arbitrage that existed between banks and HFCs,he said.
Currently RBI regulated home loans provided by all commercial banks,while housing finance companies like HDFC Ltd,LIC Housing Finance Co Ltd,also offered home loans which were regulated by the National Housing Bank.
SBI also urged upon RBI to reduce the minimum tenure of deposits to three days from seven days for inducing more flexibility of consumers. These are not issues that will lead to inflation or bring imbalances in financial stability,but induce flexibility to the depositor, Chaudhuri said.