The Reserve Bank of India (RBI) on Friday issued the draft guidelines for banks lending to Real Estate Investment Trusts (REITs), as announced in the February monetary policy review. As per the draft, aggregate exposure of a bank towards REITs must not exceed 10% of a lending bank’s eligible capital base. “This is part of RBI’s broader prudential framework. By capping exposure at 10% and requiring banks to set internal limits for real estate, the RBI aims to ensure lending remains prudent,” said Vishal Srivastava, Managing Director, Anarock Capital.