The Reserve Bank of India (RBI) on September 22, 2026, issued the Reserve Bank of India (Local Area Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026, to further amend the Reserve Bank of India (Local Area Banks - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025.
The following has been amended, namely:
• The amendment aims to standardise the valuation of investments in Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). The amendment is issued under Section 35A of the Banking Regulation Act, 1949, and takes effect from the date of issue.
• For quoted securities and units issued by InvITs/REITs, valuation will follow the existing instructions applicable to quoted securities. For unquoted units, valuation will be based on the NAV disclosed by the respective InvIT/REIT. If the InvIT/REIT fails to calculate and disclose NAV as required under the applicable SEBI Regulations, or where the units are classified as infrequently traded, the units will be valued at ₹1 for the RBI Directions. Other unquoted instruments issued by InvITs/REITs will continue to be valued according to the methodology applicable to those instruments.
[Notification No. - RBI/2026-27/265 DOR.MRG.REC.No.229/00-00-001/2026-27]
