Overview
- Banks would be allowed to lend only to SEBI‑registered, listed REITs that have at least three years of operations and no material adverse regulatory action in the past three years.
- The draft caps the aggregate exposure of all banks to a borrowing REIT and its SPVs or holding companies at 49% of the trust’s asset value as of the prior financial year, with scope for lower board‑set limits.
- Loans must be amortising with no bullet or balloon repayments, and lenders must tightly monitor end‑use to prevent financing prohibited activities such as land acquisition.
- RBI has invited public comments through March 6, 2026, with implementation targeted for July 1, 2026, or an earlier notified date.
- The framework also proposes harmonising InvIT lending norms with these safeguards and permits overseas branches of Indian banks to fund foreign REITs where effective insolvency regimes exist.