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) has issued draft Amendment Directions for instructions on ‘Lending to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)' following the announcement made in the Statement on Developmental and Regulatory Policies dated February 6, 2026. These directions propose to permit commercial banks to extend finance to REITs. Comments and feedback are requested by March 6, 2026. **Key Points / Main Content** * **Draft Amendment Directions Issued:** The RBI has issued draft Amendment Directions for public comment regarding lending to REITs and InvITs. The drafts include: * Second Amendment Directions, 2026 for Commercial Banks (Credit Facilities) * Second Amendment Directions, 2026 for Commercial Banks (Concentration Risk Management) * Fourth Amendment Directions, 2026 for Commercial Banks (Financial Statements: Presentation and Disclosures) * Second Amendment Directions, 2026 for Small Finance Banks (Credit Facilities) * Amendment Directions, 2026 for All India Financial Institutions (Credit Facilities) * **Purpose of Amendment:** The proposed amendments intend to allow commercial banks to extend finance to REITs, subject to prudential safeguards and regulatory exposure ceilings. * **Harmonisation of Guidelines:** The existing lending guidelines for InvITs, applicable to commercial banks, small finance banks, and All India Financial Institutions, will be harmonised to align with the prudential safeguards for lending to REITs. * **Feedback Submission:** Regulated entities, stakeholders, and members of the public can submit comments or feedback on the draft Amendment Directions by March 6, 2026, through either: * The 'Connect 2 Regulate' section of the RBI website, using the corresponding hyperlink for each document. * Email, with the subject line "Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))". **Impact Analysis** **Commercial Banks, Small Finance Banks, All India Financial Institutions** * **Impact:** These institutions will have the opportunity to extend finance to REITs, subject to new prudential safeguards and regulatory ceilings. They will also need to adhere to harmonised lending guidelines for InvITs and REITs. * **Action Required:** Review the draft Amendment Directions and provide feedback to the RBI by March 6, 2026. Implement any changes to lending practices once the final directions are issued. **REITs and InvITs** * **Impact:** REITs may have increased access to financing from commercial banks. * **Action Required:** Monitor the feedback process and prepare to adapt to any changes in lending practices resulting from the amended directions. **Regulated Entities, Stakeholders, and Members of Public** * **Impact:** Will be able to contribute to the final version of the policy through submission of relevant feedback. * **Action Required:** Review the document and offer feedback via email or via the 'Connect 2 Regulate' section of the RBI website by March 6, 2026.

Key Entities Referenced