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• On January 8, 2021, the RBI announced a phased resumption of operations under the
revised liquidity management framework, including variable rate reverse repo auction.
• In February 2021, the reductions in cash reserve requirements against MSME loans for
banks were extended until December 2021.
• On May 4, 2021, the RBI introduced a set of further measures aimed at easing liquidity
and financing conditions, including on-tap liquidity support to COVID-related healthcare
infrastructure and services and Special Long-Term Repo Operations (SLTRO) for Small
Finance Banks.
• The Resolution Scheme for COVID-related stressed retail and MSME loans was re-
introduced (extended for MSMEs)—with lenders allowed to invoke restructuring of loans
until end-September 2021. Furthermore, for loans restructured under the previous (August
2020) Resolution Scheme, lenders can further extend moratoriums on repayments or the
loan tenors up to a total of 2 years.
• Banks were allowed to use the countercyclical provision buffers to make specific provisions
for non-performing loans until end-March 2022.
1.4 An Overview of Real Estate Sector
The year 2020 was perfectly positioned for the Indian real estate sector to take flight. After
three years of disruptions in the form of demonetisation, GST, RERA, and the NBFC crisis,
transparency and efficiency were slowly trickling into the system. Instead, the year will
be remembered for the pandemic that affected the country. The nationwide lockdown
that followed threw markets into turmoil, bringing more pain and distress to the realty
industry. In the face of this unprecedented crisis, the real estate sector displayed remarkable
resilience. The COVID-19 crisis has hit the real estate sector hard. Governments worldwide
responded by imposing lockdown as well as stay-at-home orders to prevent a collapse of
healthcare systems. In the following months, vacant office buildings, home offices, empty
shopping malls, and closed restaurants became symbols of social distancing and limited the
interactions among people. Although these restrictions are effective in controlling the spread
of the disease, shutdowns go in hand with a global economic crisis despite a wide range of
economic support measures. Alike many industries, real estate markets, including residential
and commercial real estate, as well as mortgage markets are confronted with unprecedented
challenges. The number of commercial and residential property sales drops, people abandon
their apartments in metropolitan areas, and households facing payment difficulties in
redeeming their mortgages.
194 | Annual Report 2020-21
revised liquidity management framework, including variable rate reverse repo auction.
• In February 2021, the reductions in cash reserve requirements against MSME loans for
banks were extended until December 2021.
• On May 4, 2021, the RBI introduced a set of further measures aimed at easing liquidity
and financing conditions, including on-tap liquidity support to COVID-related healthcare
infrastructure and services and Special Long-Term Repo Operations (SLTRO) for Small
Finance Banks.
• The Resolution Scheme for COVID-related stressed retail and MSME loans was re-
introduced (extended for MSMEs)—with lenders allowed to invoke restructuring of loans
until end-September 2021. Furthermore, for loans restructured under the previous (August
2020) Resolution Scheme, lenders can further extend moratoriums on repayments or the
loan tenors up to a total of 2 years.
• Banks were allowed to use the countercyclical provision buffers to make specific provisions
for non-performing loans until end-March 2022.
1.4 An Overview of Real Estate Sector
The year 2020 was perfectly positioned for the Indian real estate sector to take flight. After
three years of disruptions in the form of demonetisation, GST, RERA, and the NBFC crisis,
transparency and efficiency were slowly trickling into the system. Instead, the year will
be remembered for the pandemic that affected the country. The nationwide lockdown
that followed threw markets into turmoil, bringing more pain and distress to the realty
industry. In the face of this unprecedented crisis, the real estate sector displayed remarkable
resilience. The COVID-19 crisis has hit the real estate sector hard. Governments worldwide
responded by imposing lockdown as well as stay-at-home orders to prevent a collapse of
healthcare systems. In the following months, vacant office buildings, home offices, empty
shopping malls, and closed restaurants became symbols of social distancing and limited the
interactions among people. Although these restrictions are effective in controlling the spread
of the disease, shutdowns go in hand with a global economic crisis despite a wide range of
economic support measures. Alike many industries, real estate markets, including residential
and commercial real estate, as well as mortgage markets are confronted with unprecedented
challenges. The number of commercial and residential property sales drops, people abandon
their apartments in metropolitan areas, and households facing payment difficulties in
redeeming their mortgages.
194 | Annual Report 2020-21
