RBI monitors realtors' loan use with issued norms

The Reserve Bank of India (RBI) informed the Supreme Court that it has issued guidelines to monitor how real estate developers use loan money. This comes amidst CBI investigations into alleged collusion between banks and builders. The RBI stated it has directed banks to avoid harassing homebuyers and has issued guidelines since 2015 to link loan disbursements to construction progress. The Supreme Court is investigating the "unholy" nexus between builders and banks. The Supreme Court previously protected homebuyers from coercive actions due to project delays and EMI defaults. Hundreds of homebuyers sought intervention against banks and builders involved in subvention schemes.