The Reserve Bank of India, through the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Third Amendment Directions, 2026, has amended the existing Concentration Risk Management Directions, 2025. The amendment has been issued consequent to the proposed changes under the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026, in exercise of powers under Sections 21 and 35A of the Banking Regulation Act, 1949. The amendment deletes Paragraph 94 under Chapter V relating to Exposure Norms and introduces a new Paragraph 94A. Under the revised framework, banks are required to establish internal limits for their aggregate exposure to the real estate sector, along with sub-limits for different categories of real estate exposures, based on their respective business models. Additionally, a specific prudential ceiling has been prescribed for exposures towards real estate investment trusts (REITs). The aggregate exposure of a bank towards REITs cannot exceed 10% of its eligible capital base. The amended directions will take effect from October 1, 2026, or from an earlier date if a bank adopts the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 in their entirety.
Reserve Bank of India
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Third Amendment Directions, 2026
RBI/2026-27/110
DOR.CRE.REC.90/07.03.001/2026-27 | Dated: June 10, 2026
Please refer to the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025 (hereinafter referred to as ‘Directions’).
2. Consequent to the amendments proposed in the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026, and in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank of India, being satisfied that it is necessary and expedient in public interest so to do , hereby, issues the Directions hereinafter specified.
3. These Amendment Directions shall modify the Directions as under:
3(1) In ‘Chapter V – Exposure Norms’ of the Directions, paragraph 94 shall be deleted.
3(2) The following new paragraphs shall be inserted, namely:
“94A. A bank shall fix internal limits for its aggregate exposure to real estate sector, as also sub-limits for various sub-categories of real estate exposures in accordance with its business model.
Provided that the sub-limit for a bank’s aggregate exposure towards real estate investment trusts (REITs) shall be subject to a prudential ceiling of 10 per cent of the bank’s eligible capital base.”
4. These Directions shall come into force from October 1, 2026, or an earlier date if the directions contained in the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026are adopted by a bank in entirety.
(Vaibhav Chaturvedi)
Chief General Manager
