CREDIT OFFTAKE NORMS FOR HOTELS RELAXED

Reserve Bank of India (RBI) has relaxed the norms for credit off-take for the hospitality sector. Under the new guidelines, hotels have been taken out of the real estate exposure for banks. However,
the rider in the guidelines is that it will be applicable to “those entrepreneurs who themselves run
these ventures”. As a result, the loans becoming cheaper as well as easier to avail for the hospitality
sector.