RBI Issues Draft Amendment Directions for instructions on ‘Lending to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)’

**Executive Summary** The Reserve Bank of India (RBI) issued draft amendment directions on February 13, 2026, for instructions on lending to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The directions propose to permit commercial banks to extend finance to REITs, subject to prudential safeguards. Comments/feedback on the draft amendments should be submitted by March 6, 2026. **Key Points / Main Content** * **Draft Amendment Directions Issued:** RBI issued draft amendment directions for public comments following the statement on Developmental and Regulatory Policies dated February 6, 2026. * **Draft Directions:** * Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026 - Draft for Comments. * Reserve Bank of India (Commercial Banks – Concentration Risk Management) Second Amendment Directions, 2026 - Draft for Comments. * Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Fourth Amendment Directions, 2026 - Draft for Comments. * Reserve Bank of India (Small Finance Banks – Credit Facilities) Second Amendment Directions, 2026 - Draft for Comments. * Reserve Bank of India (All India Financial Institutions – Credit Facilities) Amendment Directions, 2026 - Draft for Comments. * **Proposed Changes:** The draft amendment directions propose permitting commercial banks to extend finance to REITs, subject to prudential safeguards, including regulatory ceiling for exposure to REITs. Existing guidelines for lending to InvITs are proposed to be harmonized for parity with prudential safeguards for lending to REITs. * **Feedback Submission:** Regulated entities, stakeholders, and the public can submit comments/feedback on the draft amendment directions on or before March 6, 2026, through: * The "Connect 2 Regulate" section of the RBI website * Email with the subject line “Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))" **Impact Analysis** **Commercial Banks** * **Impact:** The directions propose to permit commercial banks to extend finance to REITs. * **Action Required:** Banks should review the draft amendment directions and submit feedback by March 6, 2026. **Small Finance Banks and All India Financial Institutions** * **Impact:** Existing lending guidelines will be harmonized for parity, with prudential safeguards proposed for lending to REITs. * **Action Required:** Banks and institutions should review the draft amendment directions and submit feedback by March 6, 2026. **Stakeholders / Public** * **Impact:** Could be affected by changes in lending to REITs and InvITs. * **Action Required:** Review the draft amendment directions and submit feedback by March 6, 2026.

Key Entities Referenced