MUMBAI: The Reserve Bank on Thursday allowed banks to invest in Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs), a move that will help revive the cash-starved infrastructure sector.Banks are allowed to invest in equity-linked mutual funds , venture capital funds (VCFs) and equities to the extent of 20 per cent of their Net Owned Fund (NOF). "It is proposed to allow banks to invest in REITs and InvITs within this umbrella limit. Bank of India MD Melwyn Rego felt that permitting banks to invest in REITs and InvITs is positive for the real estate and infrastructure sector as well as banks. "Overall, the policy is well balanced with new supportive measures on asset reconstruction companies (ARCs). Banks' participation under REITs and InvITs is expected to give more investment avenues to the financial industry," said Dena Bank Chairman and Managing Director Ashwani Kumar.

Source: Economic Times April 06, 2017 12:33 UTC