FAVORABLE ROLE OF RBI

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o Tax exemptions for payment of interest on capital borrowed for purchase/ construction of house property and principle repayment. This made housing finance affordable and within the reach of common man. [It is important to note that the housing sector has been recipient of a large number of fiscal incentives in the last 6`h budgets].



o These exemptions also changed the profile of the retail segment from hitherto cash transactions to book transactions.


o The Government could not ignore the importance of housing sector in overall development of the economy due to the following factors:


• Housing construction activities can generate opportunities for employment. In the present context of jobless GDP growth, this issue assumes important as the housing construction provides massive job opportunities for both unskilled and skilled man power.


• Mass construction of houses will result in the benefits of the nation by the way of healthy standard of leaving, motivation to save more and thereby providing sustainable economic recovery.


• This would also lead to growth in related industries as well.
 
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