RBI caps bank exposure (अनावरण) to REITs, InvITs at 10%
The RBI permitted (अनुमति है) banks to invest up to 10% of the unit capital of a Real Estate InvestmentTrust (REITs) or Infrastructure Investment Trusts (InvITs). The banks’ exposure to REITs/InvITs will be within the overall ceiling of 20% of the net worth permitted for direct investments in shares, convertible bonds/ debentures, units of equity-oriented mutual funds and Venture Capital Funds (VCFs). The move was aimed to help revive the cash-starved infrastructure sector.
Takeaways from above News-
The RBI permitted banks to invest up to 10% of the unit capital of an REITs or InvITs
RBI is headquartered in Mumbai and its Governor is Mr. Urjit Patel
RBI has recently allowed banks to invest in REITs & InvITs