The Reserve Bank of India has issued new directions on InvIT and REIT valuation for payments banks. Effective September 22, 2026, these amendments update Chapter IX of the Payments Banks Investment Portfolio Directions, 2025. The RBI aims to ensure clarity and uniform valuation practices across the sector.
Key Details of the InvIT and REIT Valuation Amendment
The RBI has inserted two new paragraphs — 83A and 83B — into its existing 2025 directions. These cover the valuation of units issued by Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) respectively. Additionally, the rules distinguish clearly between quoted and unquoted instruments.
For quoted securities, payments banks must value InvIT and REIT units as per existing instructions for quoted securities. However, unquoted units follow a different approach. Banks must value them at the Net Asset Value (NAV) disclosed by the respective trust. Therefore, accurate and timely NAV disclosure becomes critical for compliance.
Where an InvIT or REIT fails to compute and disclose its NAV as required under SEBI regulations, the RBI mandates a fallback. In such cases, banks must treat the unit value as ₹1 for portfolio purposes. This same ₹1 treatment also applies to units classified as infrequently traded under SEBI’s InvIT and REIT regulations of 2014.
What This Means for Payments Banks
As a result of these changes, payments banks holding InvIT or REIT units must review their valuation frameworks immediately. Non-compliant valuation could distort investment portfolios and trigger regulatory scrutiny. Meanwhile, banks should closely monitor NAV disclosures from all trust issuers in their portfolio.
For other unquoted instruments issued by InvITs or REITs, banks must follow the methodology already specified for such instruments in the existing directions. This ensures consistency across all instrument types. Additionally, the RBI exercised its powers under Section 35A of the Banking Regulation Act, 1949 to issue these directions.
The amendment comes into effect from the date of issue. Payments banks should therefore update internal policies and valuation models without delay. Compliance teams must align their processes with both RBI and SEBI regulatory frameworks going forward.
Read the full notification on the RBI official website.
Source: RBI Notifications
