RBI caps bank exposure to REITs, InvITs at 10 per cent

RBI has permitted banks to invest in up to 10 per cent of the unit capital of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Banks’ exposure to REITs/InvITs will be within the overall ceiling of 20 per cent of the net worth permitted for direct investments in shares, convertible bonds/debentures, units of equity-oriented mutual funds and venture capital funds. Banks should put in place a board-approved policy on exposures to REITs/InvITs which lays down an internal limit on such investments within the overall exposure limits with respect to the real estate and infrastructure sectors.