The Reserve Bank of India has allowed banks to invest in Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs), a move that will help revive the cash-starved infrastructure sector.
Banks are allowed to invest in equity-linked mutual funds, venture capital funds (VCFs) and equities to the extent of 20% of their Net Owned Fund (NOF). Detailed guidelines will be issued by May-end 2017, the RBI stated in its first bi-monthly monetary policy for 2017-18.
Takeaways from above News-
- RBI has allowed banks to invest in REITs & InvITs
- Real Estate Investment Trust is the full form of REITs
- Infrastructure Investment Trusts is the full form InvITs
- BP Kanungo has been recently appointed as the new Deputy Governor of RBI.
If you have any other takeaways, do share with us in the comment section
Source- The Indian Express
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