RBI Grade B Current Affairs — 11 June 2026

RBI's Third Amendment Directions 2026 restricts bank lending to only SEBI-registered and stock exchange-listed REITs and InvITs. Key requirements: 80% underlying assets must generate positive cash flows for 1+ years, aggregate bank exposure capped at 49% of gross asset value, loans must be fully secured with property charges and cash flow assignments. Bullet/ballooning repayment structures banned. Effective October 1, 2026, balancing credit access with financial stability for income-producing trusts.

This regulatory framework represents RBI's attempt to institutionalize REIT/InvIT lending while preventing the asset quality deterioration seen in real estate lending historically. The 80% cash-generating asset threshold ensures banks fund only mature, revenue-producing portfolios rather than speculative developments. The 49% aggregate exposure cap prevents over-concentration risk that plagued infrastructure financing in the past. Mandatory security structures—property charges, cash flow assignments, SPV equity pledges, and escrow accounts—create multiple recovery layers. The ban on bullet repayments aligns loan servicing with actual cash flows, preventing refinancing risks. For Indian banks' overseas branches, the 20% syndication limit allows participation in global markets while limiting exposure. Board-approved policies ensure institutional oversight of what was previously ad-hoc lending. The grandfathering clause for existing non-compliant InvIT loans provides transition time without forcing premature exits. This framework supports the government's infrastructure financing goals through REITs/InvITs while protecting banking system stability, addressing lessons from earlier real estate and infrastructure lending cycles that created significant NPAs.