RBI issued guidelines mandating banks can only lend to SEBI-registered and listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). This directive ensures lending flows to regulated, transparent investment vehicles with proper disclosure norms. Move aims to strengthen financial stability by preventing exposure to unregulated real estate and infrastructure entities. Banks must verify SEBI registration and stock exchange listing before extending credit facilities to these trusts.

This RBI directive addresses systemic risks in bank lending to real estate and infrastructure sectors. REITs and InvITs are collective investment schemes that pool money from investors to invest in income-generating real estate or infrastructure assets. SEBI registration ensures these trusts comply with disclosure, governance, and operational standards. Stock exchange listing provides liquidity and transparent price discovery. The guideline prevents banks from lending to unregulated property developers or infrastructure companies disguised as investment trusts. This protects depositor funds and maintains asset quality. Banks often faced challenges distinguishing genuine REITs/InvITs from shell companies. The directive creates clear boundaries, reducing regulatory arbitrage. It also aligns with global practices where institutional lending targets regulated investment vehicles. For the real estate sector, this pushes developers toward formal REIT structures, improving transparency. Infrastructure financing gains credibility through regulated InvIT frameworks. The move supports RBI's broader financial stability mandate while channeling credit through supervised, well-governed investment platforms.