The RBI Circulars June 2026 have been released and include several important regulatory updates announced by the Reserve Bank of India for banks, financial institutions, and the financial sector. These circulars cover topics such as REIT and InvIT lending norms, the FCNR(B) swap facility, Foreign Portfolio Investment (FPI) regulations, India–Cambodia UPI payment connectivity, FEMA liberalisation, Government Securities investment guidelines, concentration risk management, revised risk weights, Responsible Business Conduct guidelines, and the Account Aggregator ecosystem.
In this blog, we have provided the details of the RBI Circulars June 2026. We have also provided a practice quiz with multiple-choice questions, correct answers, and detailed explanations to help you revise the latest RBI circulars effectively.
What are the important RBI Circulars released in June 2026?
The RBI Circulars released in June 2026 introduced several important updates related to banking regulations, foreign exchange, lending norms, payment systems, customer protection, and financial markets.
These circulars include changes in REIT and InvIT lending guidelines, the FCNR(B) swap facility, Foreign Portfolio Investment (FPI) regulations, FEMA provisions, UPI cross-border payments, Responsible Business Conduct guidelines, and other key regulatory updates that are important for banking and financial sector exams.
| RBI Circular | Details |
| Bank lending to REITs and InvITs | Lending conditions, eligibility, exposure norms, refinancing, leverage limits |
| Concentration Risk Management | Internal exposure limits and 10% prudential ceiling for commercial banks |
| Risk Weight Guidelines | Risk weights of 100%, 125%, and 150% for different REIT exposures |
| India-Cambodia UPI Connectivity | Cross-border QR code merchant payments |
| FPI Investment in Government Securities | Removal of sub-limits under the General Route |
| Sahamati Foundation | Recognition as Self-Regulatory Organization (SRO) for the Account Aggregator ecosystem |
| FCNR(B) Swap Facility | USD-INR swap facility and CRR/SLR exemption |
| FEMA Liberalisation | Wider participation of foreign investors in listed Indian companies |
| Responsible Business Conduct | Customer protection, dark patterns, mis-selling, bundling, digital marketing practices |
Download RBI Circulars June 2026 Practice Quiz PDF
The RBI Circulars June 2026 Practice Quiz PDF brings together the latest regulatory updates issued by the Reserve Bank of India during June 2026. It contains exam-oriented MCQs with correct answers and detailed explanations to help candidates strengthen their understanding of the latest RBI circulars.
| Particulars | Link |
| RBI Circular Quiz PDF | Download Free PDF |
| Check 2026 RBI Circular Details | Check Details |
Attempt the RBI Circulars June 2026 Quiz
The RBI Circulars June 2026 Quiz helps candidates evaluate their understanding of the latest RBI circulars through exam-oriented multiple-choice questions. It covers all the important regulatory updates released during June 2026, making it a useful resource for practice, revision, and improving conceptual clarity before the examination.
1. As per RBI’s amendment direction on bank lending to REITs and InvITs, the revised provisions become applicable from:
2. RBI’s amendment direction on bank credit facilities to REITs/InvITs amends which earlier direction?
3. Banks may extend credit facilities to a REIT or InvIT only if the entity is:
4. For overseas branches of Indian banks participating in a global loan syndication to a foreign REIT, the aggregate exposure across all overseas branches is capped at:
5. SBI’s Singapore branch contributes ₹150 crore to a ₹1,000 crore syndicated loan extended to a foreign REIT. Is this within the RBI prescribed overseas branch exposure cap?
6. DSCR, a benchmark banks must assess before lending to a REIT/InvIT, stands for:
7. Under the eligibility conditions, a bank may lend to a REIT only if it is listed and at least what percentage of its underlying assets have been generating positive cash flow from operations for at least one year?
8. Bank finance to refinance an existing SPV loan under a REIT structure is permitted only when:
9. Which repayment structure is expressly disallowed for bank loans extended to REITs/InvITs?
10. Acquisition finance extended by a bank to a REIT (for acquiring stake in another entity/SPV) is governed by:
11. The overall leverage of a borrowing REIT must remain within:
12. The aggregate exposure of all lending banks (together with the REIT’s underlying SPVs and holding company) to a single borrowing REIT must not exceed:
13. Bank financing extended to REITs/InvITs, as per the amended direction, must be:
14. For an InvIT to be loan-eligible, what minimum share of its asset value must be complete and revenue-generating, having posted positive net cash flow from operations in the preceding year?
15. Under RBI’s Concentration Risk Management (Third Amendment) direction, banks must, in addition to fixing sub-limits for real estate exposure, also determine:
16. Under the Concentration Risk Management amendment, a commercial bank’s exposure to REITs is capped at what percentage of its eligible capital base?
17. The Concentration Risk Management (Third Amendment) direction capping REIT exposure at 10% of eligible capital base takes effect from:
18. Under the prescribed risk-weight framework, a bank’s normal exposure to a REIT—treated as commercial real estate exposure—attracts a risk weight of:
19. If a bank’s REIT exposure additionally qualifies as capital market exposure, the applicable risk weight is:
20. Lending to REITs by the overseas branches of an Indian bank attracts a risk weight of:
Quiz Summary
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What did RBI change for lending to REITs and InvITs?
The RBI introduced new guidelines allowing banks to provide loans to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) while maintaining proper risk management. These directions become applicable from 1 April 2027 and focus on safe lending practices.
- Lending is allowed only to SEBI-registered and regulated REITs and InvITs.
- Banks must have a Board-approved lending policy.
- Legal due diligence is mandatory.
- End-use monitoring of funds is compulsory.
- Debt Service Coverage Ratio (DSCR) should be assessed.
- Lending to stressed SPVs is restricted.
- Refinancing is allowed only for completed projects.
- Bullet and balloon repayment structures are not permitted.
- Aggregate bank exposure cannot exceed 49% of REIT asset value.
- Loans should remain fully secured.
What are the important eligibility conditions for REITs and InvITs?
RBI has prescribed minimum eligibility requirements before banks can extend credit facilities. These conditions ensure that lending is made only to financially stable investment trusts.
- Must be listed.
- Must be regulated by SEBI.
- At least 80% of assets should be income-generating.
- Assets should have generated positive operational cash flow for at least one year.
- Overall leverage should remain within SEBI limits or bank-approved limits, whichever is lower.
What are the important exposure limits introduced by RBI?
The RBI has also prescribed exposure limits to reduce concentration risk in the banking system. These limits prevent excessive lending to a single sector or entity.
| Particular | Limit |
| Overseas branch participation in foreign REIT syndication | Up to 20% |
| Aggregate bank exposure to REIT assets | Maximum 49% |
| Commercial bank exposure to REIT sector | Maximum 10% of eligible capital base |
| Applicability of lending framework | From 1 April 2027 |
| Concentration risk amendment | Effective from 1 October 2026 |
What are the revised risk weights for REIT exposures?
The RBI has clarified the capital treatment for different types of REIT lending. These risk weights are important for banking examinations.
| Type of Exposure | Risk Weight |
| Commercial Real Estate Exposure | 100% |
| Capital Market Exposure | 125% |
| Overseas Branch Lending to Foreign REITs | 150% |
What is the India-Cambodia UPI payment connectivity?
The RBI announced cross-border payment connectivity between India and Cambodia. The initiative allows Indian tourists to make merchant payments in Cambodia using UPI-enabled QR codes, improving digital payment acceptance across borders.
- UPI-based QR code payments.
- Supports Indian tourists.
- Improves international digital payment acceptance.
- Implemented with NPCI International and partner institutions.
- Promotes India’s digital payment ecosystem globally.
What changes were made for Foreign Portfolio Investors (FPIs)?
The RBI simplified investment rules for FPIs investing in Government Securities through the General Route. Certain sub-limits have been removed to make investments easier.
- Removal of short-term investment sub-limit.
- Removal of security-wise limit.
- Removal of concentration limit.
- General investment limits continue to apply.
- Clearing Corporation of India Limited (CCIL) monitors utilisation.
What is the FCNR(B) Swap Facility introduced by RBI?
The RBI introduced a USD-INR swap facility to encourage banks to mobilize Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits. This initiative strengthens India’s foreign exchange reserves while providing rupee liquidity to banks.
| Feature | Details |
| Eligible Banks | AD Category-I Banks |
| Deposit Tenure | Minimum 3 years |
| Maximum Tenure | 5 years |
| Currency | US Dollar |
| Eligible Deposits | Fresh FCNR(B) deposits only |
| Swap | USD-INR Forex Swap |
| Operational Department | RBI Financial Markets Operations Department |
What CRR and SLR benefit did RBI provide for FCNR(B) deposits?
To encourage long-term foreign currency deposits, RBI provided regulatory relief to banks.
- FCNR(B) deposits with 3–5 year maturity qualify.
- Eligible deposits are exempt from CRR.
- Eligible deposits are exempt from SLR.
- Applicable across eligible banking institutions.
- Helps banks mobilize long-term foreign currency resources.
What changes were made under FEMA for foreign investors?
The RBI liberalised investment rules under the FEMA regulations by expanding investment eligibility beyond only NRIs and Overseas Citizens of India (OCIs).
- Resident individuals outside India can invest.
- Investments can be made through recognised stock exchanges.
- Investments qualify under the Foreign Portfolio Investment framework.
- AD Category-I Banks may open repatriable INR accounts.
- Investments remain subject to RBI and FEMA regulations.
What is Responsible Business Conduct according to RBI?
The RBI issued comprehensive directions to strengthen customer protection and improve ethical marketing of banking products and services. The guidelines focus on preventing unfair selling practices and improving transparency.
- Prevent mis-selling of financial products.
- Restrict compulsory bundling of products.
- Prohibit dark patterns in digital applications.
- Require explicit customer consent.
- Improve complaint handling systems.
- Regulate Direct Selling Agents (DSAs).
- Ensure transparent advertisements.
- Strengthen governance for third-party product sales.
FAQs
They cover REIT and InvIT lending, FCNR(B) swap facility, FPI regulations, FEMA updates, UPI connectivity, risk management, and customer protection.
The RBI introduced new eligibility conditions, exposure limits, refinancing norms, and risk management requirements for bank lending.
It is a USD-INR forex swap facility that helps banks mobilize eligible FCNR(B) deposits while improving rupee liquidity.
The RBI removed certain investment sub-limits under the General Route to simplify investments in Government Securities.
It enables Indian tourists to make QR code-based merchant payments in Cambodia using UPI.
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