RBI Commercial Banks Investment Portfolio Third Amendment Directions 2026
The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Third Amendment Directions, 2026 to update valuation rules for commercial banks. These updated guidelines focus on ensuring clarity and maintaining uniform valuation practices for units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).
The amendment modifies the earlier Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025. It introduces specific paragraphs regarding the valuation of quoted and unquoted securities of InvITs and REITs, impacting how commercial banks handle these assets in their investment portfolios. Financial institutions and commercial banks operating under the purview of the RBI must take note of these regulatory changes to ensure compliance with the newly enforced framework.
Key Details of RBI Third Amendment Directions 2026
| Feature | Detail |
|---|---|
| Issuer | Reserve Bank of India (RBI) |
| Circular Number | RBI/2026-27/264 (DOR.MRG.REC.No.228/00-00-001/2026-27) |
| Subject | Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio |
| Effective Date | September 22, 2026 |
| Governing Authority | Section 35A of the Banking Regulation Act, 1949 |
| Official Website | https://www.rbi.org.in |
Important Dates
| Milestone | Date |
|---|---|
| Notification Date / Start Date | September 22, 2026 |
Overview of Valuation Guidelines for InvITs and REITs
The third amendment introduces specific paragraphs into the overarching 2025 directions, notably Paragraph 84A for Infrastructure Investment Trusts (InvITs) and Paragraph 84B for Real Estate Investment Trusts (REITs).
- Quoted Securities: Quoted securities and units issued by InvITs and REITs shall be valued mutatis mutandis as per the existing instructions laid down for quoted securities within the directions.
- Unquoted Units: Unquoted units must be valued at the Net Asset Value (NAV) as disclosed by the respective InvIT or REIT. If an entity fails to compute and disclose its NAV in compliance with SEBI Regulations, the value of its units will be treated as ₹1 for the purposes of these directions. This default valuation also applies to units classified as infrequently traded under SEBI regulations.
- Other Unquoted Instruments: Any other unquoted instruments issued by an InvIT or REIT are mandated to follow the specific methodology specified for such instruments in the primary guidelines.
Applicability and Next Steps
These directions come into effect immediately from the date of issue, September 22, 2026. Commercial banks holding investments in InvITs and REITs must review their portfolio classification and valuation procedures to align with the newly introduced norms. Compliance officers and portfolio managers should consult the official RBI notification for exact technical phrasing and ensure proper reporting methods are integrated into institutional accounting practices. Further updates and details can be obtained directly from the official Reserve Bank of India website.
Frequently Asked Questions
What is the official circular number for the RBI Third Amendment Directions 2026?
The circular number is RBI/2026-27/264, with reference DOR.MRG.REC.No.228/00-00-001/2026-27.
When did these amendment directions come into effect?
The amendment directions came into effect from the date of issue, which is September 22, 2026.
How are unquoted units of InvITs valued under the new directions?
Unquoted units of InvITs must be valued at the NAV disclosed by the InvIT. If they fail to disclose the NAV or are classified as infrequently traded, the unit value will be treated as ₹1.
What valuation rule applies to unquoted units of REITs?
Unquoted units of REITs are valued at the NAV disclosed by the REIT. If the NAV is not computed and disclosed as per SEBI regulations, or if they are infrequently traded, the value is treated as ₹1.
Under which statutory power did RBI issue these directions?
The RBI issued these directions using powers conferred by Section 35A of the Banking Regulation Act, 1949.
Official Links
Details are compiled from official notices. Always confirm eligibility, dates and fees on the official website before applying.