“RBI’s new REIT lending framework enables bank funding to REITs, with prudential safeguards in place. By enabling financing to cash flow generating, listed REITs, the norms could unlock a refinancing opportunity of ~Rs. 26,000 crore for banks and improve liability diversification for REITs through longer-tenure bank debt. At the same time, calibrated safeguards — exposure caps, strong security structures, escrow-backed cash flow ringfencing, and restrictions on back-ended repayments — ensure risk containment. With comfortable leverage levels and significant headroom for growth, the framework supports positioning of REITs as a more resilient, debt-enabled asset class in India’s commercial real-estate ecosystem.”