RBI proposes 10 percent exposure limit for bank lending to REITs
India's central bank proposed allowing banks to lend to REITs with a 10 percent exposure limit. The move aims to spur fresh funding for the property sector.
洞察:
The Reserve Bank of India (RBI) has issued a draft circular proposing new guidelines that would allow Indian banks to extend credit to listed Real Estate Investment Trusts (REITs). Released on February 13, 2026, the proposal establishes a formal channel for bank lending to the sector while introducing a series of quantitative safeguards. A primary feature of the draft is the setting of a 10% exposure ceiling of a bank's eligible capital base for lending to these entities. Furthermore, the central bank has proposed an aggregate lender exposure cap equal to 49% of a REIT's assets.
