Mumbai, Feb. 7 -- The Reserve Bank of India (RBI) has unlocked a fresh source of funds for the nation's property sector, allowing banks to lend directly to real estate investment trusts (Reits) for the first time. The decision, announced on Friday by governor Sanjay Malhotra, ends years of regulatory disparity between Reits and their infrastructure peers, InvITs. By allowing access to bank credit, RBI is providing a cheaper alternative to the expensive bond and commercial paper markets that Reits have traditionally tapped. "To further promote financing to the real estate sector, it is proposed to allow banks to lend to Reits with certain prudential safeguards," Reserve Bank of India governor Sanjay Malhotra said while presenting the RBI's monetary policy statement on Friday. Reits are regulated asset classes that own and operate income-generating real estate. To an investor, they provide a regular distribution of at least 90% of their cash flows to holders of their units. While India's Reit market has been an attractive option for global and domestic institutional investors seeking a slice of the country's profitable property market, it has so far eluded widespread retail interest. In India, Reits and infrastructure investment trusts were conceptualized to free up banks' funds for completed and operational real estate and infrastructure projects....