Banks provide one per cent interest subsidy for home loans of up to Rs 10 lakh.

"Housing loans extended to NRIs for construction of farm houses, and to staff members of the banks are not eligible for subsidy under the scheme," it said in a notification.

The central bank said the notification follows the recent clarifications issued by the government.

The government, in the Budget of 2009-10, announced a scheme of one per cent interest subvention in respect of individual housing loans up to Rs 10 lakh, provided the cost of unit does not exceed Rs 20 lakh.

The scheme was valid till September 30, 2010, with an initial allocation of Rs 1,000 crore.

During the last Budget, the scheme was extended till March 31, 2011, with an additional provision of Rs 700 crore.

Further, RBI directed the banks to use their own funds for upfront credit of subsidy under the scheme till government makes reimbursement and added that loans sanctioned prior to October 1, 2009 would not qualify for reimbursement under it.

"While calculating the interest subsidy, each disbursement may be treated as a separate loan and for each disbursement, subsidy claim may be made for twelve instalments," RBI said.

The apex bank also asked all the lenders to submit their claims on a monthly basis in respect of all housing loans eligible for subsidy under the scheme.