RBI Permits Commercial Banks to Finance REITs; Releases Final Lending Framework



Quick Summary
The Reserve Bank of India (RBI) has announced new lending framework amendments, officially permitting commercial banks to provide financing to Real Estate Investment Trusts (REITs). This significant move aims to expand funding options for the real estate sector. The RBI has also aligned lending rules for Infrastructure Investment Trusts (InvITs) with those for REITs, creating a more consistent regulatory environment. These changes incorporate stakeholder feedback and are effective immediately, though certain capital adequacy amendments have been deferred.

The Reserve Bank of India (RBI) has issued final amendment directions permitting commercial banks to extend credit facilities to Real Estate Investment Trusts (REITs), a significant move aimed at broadening financing avenues for the real estate investment ecosystem. The new framework also harmonises existing lending norms for Infrastructure Investment Trusts (InvITs) with those applicable to REITs, ensuring a more consistent regulatory approach. What Has RBI Announced? On June 10, 2026, the
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FAQ :

The RBI has officially permitted commercial banks to extend credit facilities to Real Estate Investment Trusts (REITs) for the first time.

The RBI has harmonised the lending framework for InvITs with the new norms introduced for REITs, ensuring a consistent regulatory approach.

The RBI released its final amendment directions on June 10, 2026, after reviewing stakeholder feedback on draft guidelines issued on February 13, 2026.

Yes, certain proposed amendments related to financial statement presentation and disclosures have been deferred due to upcoming changes in asset classification and capital charge requirements.

The move is expected to improve access to institutional funding for REITs and InvITs, support the growth of India's real estate investment market, and potentially contribute to deeper capital markets.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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