RBI Payments Banks Investment Portfolio Second Amendment Directions 2026
The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026. This regulatory update introduces critical instructions concerning the valuation of units in Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) for payments banks operating in India. Affected financial entities and compliance officers must take note of these updated guidelines issued under Section 35A of the Banking Regulation Act, 1949.
Overview of RBI Second Amendment Directions 2026
The Reserve Bank of India announced these comprehensive amendments on September 22, 2026, to bring clarity and uniform valuation practices across all payments banks. Building upon Chapter IX of the principal directions dated November 28, 2025, the new amendment explicitly inserts Paragraphs 83A and 83B to govern the fair valuation of quoted and unquoted units of InvITs and REITs. Stakeholders are advised to review the official notification for complete compliance details.
Key Details Table
| Feature | Details |
|---|---|
| Regulatory Body | Reserve Bank of India (RBI) |
| Circular Number | RBI/2026-27/267 (DOR.MRG.REC.No.231/00-00-001/2026-27) |
| Subject | Payments Banks - Classification, Valuation, and Operation of Investment Portfolio |
| Effective Date | September 22, 2026 |
| Official Website | https://www.rbi.org.in |
Important Dates Table
| Event Description | Date |
|---|---|
| Issuance Date | September 22, 2026 |
| Coming into Effect | September 22, 2026 |
Valuation Rules for InvITs and REITs Units
The newly introduced Paragraph 83A and Paragraph 83B outline specific parameters for valuing Infrastructure Investment Trusts and Real Estate Investment Trusts respectively.
Quoted and Unquoted Securities
- Quoted Securities: Quoted securities and units issued by InvITs and REITs must be valued mutatis mutandis as per the existing instructions provided in the principal directions for quoted securities.
- Unquoted Units: The valuation of unquoted units shall be conducted at the Net Asset Value (NAV) disclosed by the respective InvIT or REIT. If an entity fails to compute and disclose the NAV according to the frequency and manner specified under SEBI Regulations of 2014, the unit value will be treated as ₹1. This ₹1 rule also applies to units classified as infrequently traded under SEBI regulations.
- Other Unquoted Instruments: Other unquoted instruments issued by InvITs or REITs will follow the general valuation methodology prescribed for such instruments.
Who Is Affected and What Readers Should Do Next
This regulatory update directly impacts all licensed payments banks operating within India that maintain investment portfolios containing units or instruments of InvITs and REITs. Compliance teams, risk management departments, and internal auditors of these banking institutions must immediately incorporate these revised valuation protocols into their operational frameworks. Financial institutions should verify their current holdings and ensure that their valuation practices align strictly with the newly mandated SEBI NAV criteria and default ₹1 valuation rules where disclosures are missing.
Official Resources and Access
The complete notification text and related documentation can be accessed directly through the official Reserve Bank of India web portal. Readers and financial professionals are encouraged to refer to the primary notification under reference number RBI/2026-27/267 for deep regulatory insights and statutory references.
Frequently Asked Questions
What is the circular number for the RBI Payments Banks Second Amendment Directions, 2026?
The circular number is RBI/2026-27/267, under reference DOR.MRG.REC.No.231/00-00-001/2026-27.
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 should unquoted units of InvITs be valued under the new directions?
Unquoted units of InvITs must be valued at the NAV disclosed by the InvIT. If the InvIT fails to disclose the NAV as per SEBI regulations, or if units are infrequently traded, the value shall be treated as ₹1.
Are REIT units subject to the same valuation rules as InvIT units?
Yes, Paragraph 83B applies similar valuation rules for REIT units, requiring valuation at disclosed NAV or at ₹1 in cases of failure to disclose or infrequent trading.
Under which legal provision were these directions issued?
The directions were issued by the Reserve Bank of India in exercise of 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.