MUMBAI, Feb. 8 -- After a lackluster Union budget, the ailing real estate market got a boost from the Reserve Bank of India (RBI) with its decision to allow banks to extend commencement of commercial operations of project loans by another year. Developers expect the move by the apex body would bring relief to the cash starved developers and ease the liquidity crunch to an extent.

The RBI's move is likely to help developers focus on completing projects and ease banks' worry about projects turning into non-performing assets.

"This is a big move and will bring the much-needed relief to the cash-starved real estate sector - and to both developers and the housing finance companies (HFCs) from the liquidity perspective. It will help ease out th...