Banks have approached the Reserve Bank of India to ease proposed lending norms for infrastructure investment trusts (InvITs), citing concerns over a mandatory three-year operational track record requirement that could delay infrastructure monetisation and choke fresh project financing. According to reports from The Economic Times, lenders have asked the banking regulator to link eligibility for financing to the quality of underlying assets rather than the age of the InvIT, contending that the proposed requirement creates an unnecessary entry barrier for newly formed trusts holding operational assets.
In March, the RBI notified the Reserve Bank of India (Commercial Banks - Credit Facilities) Amendment Directions, 2026 (Revised), according to which banks can lend to both real estate investment trusts (REITs) and InvITs which are listed, have completed three years of operations and have not faced any adverse regulatory action in the past three years. As reported by The Economic Times, the directions are to be implemented from July 1. A bank executive noted that concerns were flagged to the regulator in April, stating that the entry barrier could lead to delays in new infrastructure projects being shifted to InvITs and impact fresh sanctions.
According to the latest government data cited by The Economic Times, asset monetisation through InvITs and REITs has unlocked more than ₹1.5 lakh crore, recycling funds into new projects and attracting global investors. An industry executive warned that if InvITs are not able to access cheaper credit, their asset acquisition would also be impacted. The RBI has set the same standards for both REITs and InvITs, when both are different, as noted by an industry executive to The Economic Times.
According to a recent report by ratings agency Crisil as reported by The Economic Times, assets under management of road sector InvITs are likely to increase 30% to ₹3.9 lakh crore by the end of this financial year. The growth will be fuelled by monetisation of toll road assets by the National Highways Authority of India (NHAI) and continued traction in hybrid annuity model (HAM) asset sales by road developers. Earlier this month, the Securities and Exchange Board of India issued a circular stating that InvITs can use fresh borrowings exceeding 49% of their asset value for capital expenditure aimed at enhancing asset performance or augmenting capacity.
