Regulatory Alerts2026-06-10
Added · Updated
Reserve Bank of India (Small Finance Banks – Credit Facilities) Second Amendment Directions, 2026
The document substitutes paragraph 137A in Chapter IX of the Directions to permit lending to Infrastructure Investment Trusts (InvITs) registered with and regulated by SEBI, specifically requiring that such InvITs be listed. It mandates that not less than 80 per cent of InvIT asset value be invested in completed, revenue-generating infrastructure projects with positive cash flows for at least one year, and sets a prudential ceiling limiting aggregate bank exposure to 49 per cent of the InvIT’s asset value. The amendments prohibit bullet or ballooning repayment structures, forbid financing for acquiring equity in other entities, and require full security coverage including exclusive first charges on immovable property. These Directions come into force on October 1, 2026, allowing existing non-conforming loans to run off to maturity but banning their renewal or limit enhancements unless they comply with the new rules.
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