New Delhi, Feb. 6 -- The Reserve Bank of India (RBI) Governor Sanjay Malhotra announced on Friday that banks are now allowed to lend directly to Real Estate Investment Trusts (REITs).

Anshuman Magazine, Chairman & CEO for India, South-East Asia, Middle East & Africa at CBRE, welcomed the move, stating it will provide a "major boost" to these investment tools. He noted that the change will "make it easier for the trusts to raise funds at relatively cheaper rates." By opening up bank loans, REITs can now move away from their reliance on more expensive ways of borrowing. Magazine added that with this new access, REITs will have a "diversified funding base, making them less vulnerable to capital market volatility."

This policy change is des...