Regulatory Alerts2026-06-10
Added · Updated
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026
Exposures to Real Estate Investment Trusts (REITs) are treated as Commercial Real Estate exposures with a 100 percent risk weight, or 125 percent if they qualify as capital market exposures. Lending to REITs by overseas branches of Indian banks attracts a 150 percent risk weight. These rules apply to commercial banks and come into force on October 1, 2026, or earlier if the bank adopts the related Credit Facilities Third Amendment Directions in entirety.
Search the Website
( 194 kb ) Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026
RBI/2026-27/111 DOR.CRE.REC.91/21-01-002/2026-27
June 10, 2026
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026
Please refer to the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘ Directions ’).
-
On a review, Consequent to the issuance of the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 , and in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank of India, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
-
The Amendment Directions insert paragraph 61A in Chapter IV- ‘Risk Weighted Assets (RWAs)’ of the Directions, as under:
“61A. Exposures to Real Estate Investment Trusts (REITs) shall be treated as Commercial Real Estate (CRE) exposures and shall attract a risk weight of 100 per cent. However, if such exposures qualify as capital market exposures in terms of paragraph 95A of the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025 , the applicable risk weight shall be 125 per cent.
61B. Lending to REITs undertaken by overseas branches of an Indian bank shall attract a risk weight of 150 per cent.”
- These Directions shall come into force from October 1, 2026 , or an earlier date if the directions contained in the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 are adopted by a bank in entirety.
(Vaibhav Chaturvedi) Chief General Manager
2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Archives
Top
Back to previous page
More like this from RBI
RBI published 59 documents in the last 30 days. We email you each new one the day it's published.