New Delhi, Feb. 6 -- The Reserve Bank of India (RBI) on Friday announced that banks will now be permitted to lend directly to Real Estate Investment Trusts (REITs), marking a significant policy shift for the real estate and capital markets.

RBI Governor Sanjay Malhotra said the move is intended to improve access to finance for the sector.

Industry executives welcomed the decision, saying it would ease funding constraints for REITs.

Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa at CBRE, said the change would provide a "major boost" to REITs by enabling them to "raise funds at relatively cheaper rates," reported ANI.

He added that access to bank loans would reduce reliance on costlier borrowing rout...