RBI allows banks to invest in REITs, InvITs
6 April 2017 5:53 PM GMT
The Reserve Bank on Thursday allowed banks to invest in Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs), a move that will help revive the cash-starved infrastructure sector. Banks are allowed to invest in equity-linked mutual funds, venture capital funds (VCFs) and equities to the extent of 20 per cent of their Net Owned Fund (NOF).
"It is proposed to allow banks to invest in REITs and InvITs within this umbrella limit. Detailed guidelines will be issued by May-end 2017," the RBI said in its first bi-monthly monetary policy for 2017-18.
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