The finance ministry has proposed to the RBI, the idea of considering housing sector in the infrastructure belt so as to attain a new status. The ministry also asked the reserve bank to ease the provision norms such that banks can facilitate its customers attractively by introducing newer loan options.Finance ministry pushed RBI to look after the housing sector’s changing momentum. The lowering of provisional norms will also bring the cost of houses down. A reduction of 40-50 basis points in provisioning norms can allocate more capital to banks for lending towards the housing sector. This will empower the economy as the lowering of residential real estate will motivate the consumerism.RBI had pulled up the provisioning for the sector from 0.4% for standard assets to 1% in October 2009, fuelling concerns over asset quality. With loan growth to commercial real estate dropping to 7.8% in 2011-12, the government feels the time is redefine the measures.As the home sales have been dipped as compared to older times due to heavy prices. And developers’ vow that bringing down prices would be difficult unless liquidity for projects improves and interest rates for housing projects are reduced.Hence relaxing the provisioning norms would have a positive impact on the system. “This move will improve sentiment and reduce interest rates for developers. This is a step in the right direction,” said the CREDAI president.RBI however has not shown any sign of approval. Well we just have to wait to witness the changing air of the real estate in India.