This will enable creation of a track record for repayment of a future home loan product. Once the customer reaches a threshold balance, the financial institutions can consider sanctioning of a housing loan. The balance in the account could act as collateral or the margin.
If a range is announced around the point target, it is important that the edges are interpreted as "soft-edged" and not as triggers for policy, thus allowing for a gradual and medium-term approach to monetary policy.