RBI mandates banks lend only to SEBI-registered REITs/InvITs

The draft covers various transactions that give rise to CCR, including over-the-counter (OTC) derivatives, exchange-traded derivatives, securities financing transactions, and long-settlement transactions. It also details the treatment for banks acting as clearing members in equity and commodity derivatives segments and addresses the deferment of option premiums and computation of effective notional for options.

Separately, the RBI has also released a draft framework consolidating its supervisory instructions for risk management, compliance, and internal audit functions within banks. This initiative aims to simplify regulations and harmonize instructions for these control functions, emphasizing the board's oversight and the independence of these departments. Banks will be required to have board-approved policies for each function, with the new directions set to take effect from January 1, 2027.

Previously, the RBI had mandated that bank loans to SEBI-registered Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) must be fully secured and repaid via cash flows.