RBI caps bank exposure to REITs, InvITs at 10%

The RBI permitted banks to invest up to 10% of the unit capital of a Real Estate Investment Trust (REITs) or Infrastructure Investment Trusts (InvITs).

The banks’ exposure to REITs/InvITs will be within the overall ceiling of 20% of the net worth permitted for direct investments in shares, convertible bonds/ debentures, units of equity-oriented mutual funds and Venture Capital Funds (VCFs). The move was aimed to help revive the cash-starved infrastructure sector.

    Takeaways from above News-
    • The RBI permitted banks to invest up to 10% of the unit capital of an REITs or InvITs
    • RBI is headquartered in Mumbai and its Governor is Mr. Urjit Patel
    • RBI has recently allowed banks to invest in REITs & InvITs

    If you have any other takeaways, do share with us in the comment section
    Source- Indian Express

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