India's RBI rolls out new REIT lending rules and NRI investment reforms

On June 10 2026 the Reserve Bank of India issued amendment directions that will, from October 1 2026, allow commercial banks to lend directly to listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) that meet strict eligibility criteria, such as having at least 80% of assets generating positive cash flows for a year. The framework also bans bullet‑style repayment structures, requiring loan schedules to align with the trusts’ operational cash flows.

In parallel, the RBI simplified investment rules for non‑resident Indians. A single designated repatriable rupee account can now be used to buy Indian equities, receive proceeds, reinvest or remit funds abroad. Individual equity‑holding limits for NRIs were raised from 5% to 10% in a listed company and the aggregate foreign‑individual limit from 10% to 24%. The changes aim to attract more diaspora capital, particularly from UAE‑based investors, by reducing paperwork and improving liquidity.