{"id":934,"date":"2019-10-17T05:03:57","date_gmt":"2019-10-17T05:03:57","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/10\/17\/rbi-asks-banks-to-put-in-place-board-approved-policy-for-making-investment-in-invits\/"},"modified":"2019-10-17T05:03:57","modified_gmt":"2019-10-17T05:03:57","slug":"rbi-asks-banks-to-put-in-place-board-approved-policy-for-making-investment-in-invits","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/10\/17\/rbi-asks-banks-to-put-in-place-board-approved-policy-for-making-investment-in-invits\/","title":{"rendered":"RBI asks banks to put in place board-approved policy for making investment in InvITs"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1735466\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-585.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-585.jpg 660w, https:\/\/images.financialexpress.com\/2019\/10\/cats-585-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/10\/cats-585-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/10\/cats-585-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"size-full wp-image-1735466\" src=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-585.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-585.jpg 660w, https:\/\/images.financialexpress.com\/2019\/10\/cats-585-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/10\/cats-585-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/10\/cats-585-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">The overall leverage of the InvITs and the underlying SPVs put together shall be within the permissible leverage as per the board approved policy of the banks,\u201d it said.<\/span><\/figure>\n<\/div>\n<p>The Reserve Bank on Monday asked banks to put in place a board-approved policy for making investment in Infrastructure investment trusts (InvITs). An InvIT is a collective investment scheme, which enables direct investment of money from individual and institutional investors in infrastructure projects and return out of their investment.<\/p>\n<p>Banks and insurance companies have not been investing in InvITs because of regulatory restrictions. \u201cBanks shall put in place a board approved policy on exposures to InvITs which shall inter alia cover the appraisal mechanism, sanctioning conditions, internal limits, monitoring mechanism, etc,\u201d the <a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a> said in a statement.<\/p>\n<p>The audit committee of the board of banks shall review the compliance to the above conditions on a half yearly basis, it said. Banks will lend to only those InvITs where none of the underlying SPVs, which have existing bank loans, is facing \u2018financial difficulty\u2019, it said. \u201cWithout prejudice to generality, banks shall undertake assessment of all critical parameters including sufficiency of cash flows at InvIT level to ensure timely debt servicing.<\/p>\n<p>The overall leverage of the InvITs and the underlying SPVs put together shall be within the permissible leverage as per the board approved policy of the banks,\u201d it said. Banks shall also monitor performance of the underlying SPVs on an ongoing basis as ability of the InvITs to meet their debt obligation will largely depend on the performance of these SPVs, it said.<\/p>\n<p>As InvITs are trusts, it said, banks should keep in mind the legal provisions in respect of these entities especially those regarding enforcement of security.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n<div class=\"jobbi-after-content-jh-placement jobbi-entity-placement\" id=\"jobbi-2162328101\"><div id=\"jobbi-3663615416\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5862940809620110\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-5862940809620110\" \ndata-ad-slot=\"\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>[ad_1] The overall leverage of the InvITs and the underlying SPVs put together shall be within the permissible leverage as per the board approved policy of the banks,\u201d it said. The Reserve Bank on Monday asked banks to put in place a board-approved policy for making investment in Infrastructure investment trusts (InvITs). An InvIT is [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":935,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=934"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/934\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/935"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}