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Jun 11, 2026
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RBI allows banks to lend to REITs and InvITs; caps exposure at 49% of asset value
The Reserve Bank has issued final amendment directions permitting commercial banks to lend to Real Estate Investment Trusts and InvITs, while retaining key prudential safeguards on exposure limits, asset quality, and repayment structures.
The final directions were issued after incorporating feedback received from stakeholders on the draft norms.
Major changes and conditions
Among major changes, the Reserve Bank of India (RBI) said overseas branches of Indian banks may participate in Real Estate Investment Trusts (REITs) financing under syndication arrangements, subject to a 20 percent cap on contribution and a 150 percent risk weight.
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