New Delhi, June 10 -- The Reserve Bank of India has mandated that all loans to REITs and InvITs must be fully secured and repaid in line with cash flows, banning bullet or ballooning structures.

The Reserve Bank of India on Wednesday issued the Third Amendment Directions, 2026 to the Commercial Banks - Credit Facilities framework, providing a clearer rulebook for bank lending to Real Estate Investment Trusts and Infrastructure Investment Trusts while tightening oversight.

Under the revised norms, banks can lend only to REITs and InvITs that are registered with and regulated by SEBI and listed on recognised stock exchanges. For overseas branches of Indian banks, an exemption applies for syndicated lending to foreign-listed REITs if the b...