New Delhi, Feb 7 (TIWN) The Reserve Bank of India's (RBI) monetary policy meet on Thursday offered major policy measures to support the slowing real estate sector, drawing applause from sector players.

To boost growth and lift sentiment, the RBI has eased the cash reserve ratio (CRR) requirement of commercial banks for sectors with multiplier-effect, including the residential housing segment. The other sectors which would benefit from the decision are automobiles, and micro, small and medium enterprises (MSME).

"It has now been decided that scheduled commercial banks will be allowed to deduct the equivalent of incremental credit disbursed by them as retail loans for automobiles, residential housing and loans to MSMEs, over and above the outstanding level of credit to these segments as at the end of the fortnight ended January 31, 2020, from their net demand and time liabilities (NDTL) for maintenance of cash reserve ratio (CRR)," said the RBI''s Statement on Developmental and Regulatory Policies.

This exemption will be available for incremental credit extended up to the fortnight ending July 31, 2020.

The apex bank also extended the date of commencement of commercial operations of project loans for commercial real estate which have been delayed for "reasons beyond the control of promoters" by another one year without downgrading the asset classification in line with treatment accorded to other project loans for the non-infrastructure sector.