Current Affairs · RBI Prudential Norms for REITs

Regarding the draft prudential guidelines issued by the Reserve Bank of India for bank lending to Real Estate Investment Trusts (REITs), which of the following statements is/are correct? 1. The 49% regulatory cap on the total credit exposure of the entire banking system to a single REIT must encompass the combined exposure to the REIT, its holding companies, and its Special Purpose Vehicles (SPVs). 2. Banks are required to formulate a board-approved policy that has the authority to set an exposure limit for a single REIT at a threshold lower than the 49% regulatory maximum. 3. To ensure prudent debt management and cash flow alignment, banks are required to avoid loan repayment structures that involve bullet or balloon payments. 4. As a safeguard against fund diversion, banks must either establish an escrow mechanism or create a charge over the receivables of the underlying properties. Select the correct option: