RBI Releases Amendment Directions easing Bank Lending Norms for REITs and InvITs

Current Context: On June 10, 2026, the Reserve Bank of India (RBI) issued the Third Amendment Directions, 2026 under Commercial Banks – Credit Facilities.

• It introduced a harmonised lending framework for Real Estate Investment Trusts (REITs) and updated norms for Infrastructure Investment Trusts (InvITs).
• Eligibility : At least 80% assets in cash‑generating properties/projects with positive operating cash flows for one year.
• Exposure : Aggregate bank exposure capped at 49% of asset value, with risk weights of 100% for REITs (125% if treated as capital market exposure) and corporate‑aligned weights for InvITs.
• Safeguards : No financing for land acquisition or under‑construction projects, mandatory Board‑approved policies, and strengthened monitoring.
• Impact : Provides REITs & InvITs with stable long‑term bank funding, boosting liquidity, infrastructure, and real estate growth.
• Effective : Norms apply from October 1, 2026, with option for early adoption by banks.

Question:

Q.1 Under the new RBI framework, REITs and InvITs must have at least what percentage of assets in cash-generating properties/projects?
a) 60%
b) 70%
c) 75%
d) 80%

Answer: d) To qualify for bank financing, REITs and InvITs must maintain at least 80% of their assets in cash-generating properties or projects.