According to RBI, what is the maximum per cent of Real Estate Investment Trusts and Infrastructure Investment Trusts, banks are allowed to invest?

Solution

In a move to boost spending on infrastructure, the RBI on 18 April 2017 allowed banks to invest up to 10 per cent of the unit capital of single Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). It has been decided to allow banks to participate in REITs and InvITs within the overall ceiling of 20 per cent of their net worth permitted for direct investments in shares, convertible bonds/debentures, units of equity-oriented mutual funds and exposures to venture capital funds (VCFs). The apex bank said the permission was subject to the condition that banks will not invest more than 10 per cent of the unit capital of a REIT or an InvIT.