In a decision aimed at giving a fillip to the travel industry, the Reserve Bank of India (RBI) has taken hotels out of real estate category so that the sector can get larger loans at lower interest rates.
Currently, because hotels are considered part of the real estate sector, bank loans for hotel projects come with interest rates applicable to the sector.
RBI has taken the decision after the Ministry of Tourism took up the matter with it, stressing that hotels form a vital and important component of the tourism sector that plays an important role in the economic growth of the country.
Published 15 September 2009, 15:59 IST