RBI issued final revised guidelines for lending to REITs and InvITs

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RBI's REITs-InvITs Guidelines

Highlights

The Reserve Bank of India has issued final revised guidelines for lending to REITs and InvITs, which will be implemented with prudential safeguards and regulatory limits.
The revised guidelines include credit facilities, concentration risk management, and capital adequacy for commercial banks, small finance banks, and all-India financial institutions.
According to the standardized credit risk guidelines issued on April 27, 2026, changes in asset classifications will take effect from April 1, 2027, and the 2025 disclosure rules will remain unchanged.

This article was translated from the original. Read the original version by our correspondent here.

New Lending Framework and Regulatory Changes

According to a press release from the RBI, the central bank has issued the final amendment guidelines after reviewing stakeholder feedback on the draft amendments released on February 13, 2026. The draft had proposed allowing commercial banks to extend credit facilities to REITs, provided appropriate prudential safeguards are in place, including regulatory limits on exposure to REITs.

RBI stated that the existing guidelines for lending to InvITs, which apply to commercial banks, small finance banks, and all-India financial institutions, are also being harmonized with the prudential safeguards set for REITs. Amendments based on the feedback received have been incorporated into the final guidelines, and a summary of the feedback is provided in the annex.

The issued amendments cover credit facilities by commercial banks, concentration risk management, prudential norms for capital adequacy, credit facilities by small finance banks, and credit facilities by all-India financial institutions. All these have been notified as the 2026 amendment guidelines.

Impact on Banks and Investment Framework

These changes provide a clearer regulatory basis for financing listed trust structures, while also setting parallel risk control conditions for banks. This is expected to bring greater uniformity to the lending framework for REITs and InvITs.

RBI also clarified that changes to asset classes due to the standardized approach to credit risk instructions issued on April 27, 2026, will take effect from April 1, 2027. For this reason, it has been decided not to amend the Reserve Bank of India (Commercial Banks, Financial Statements: Presentation and Disclosure), 2025 at this time, as was proposed in the draft guidelines.

Our previous report focused on the dividend record dates and per-share payment details in June for Indian Bank, HDFC Bank, Canara Bank, Punjab National Bank, and IndusInd Bank. That article noted that trading activity may increase around record dates and that dividend announcements indicate banks’ capital positions and shareholder return strategies.

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