The RBI recently announced measures to reduce costs for “affordable” housing and infrastructure. They will require banks to issue 7 years bonds, and that money should be used to lend to infra or affordable housing. The bonds, being liabilities, would normally attract SLR and CRR - that is, 22.5% of the amount would have to be placed in government bonds and another 4%, placed interest free with the RBI.
The special notification . . .