Reserve Bank of India (Payments Banks
The Reserve Bank of India issued new valuation rules for payments banks’ investments in InvITs and REITs, effective immediately, to standardize fair value practices.
The Reserve Bank of India (RBI) amended its 2025 directions on investment valuation for payments banks to clarify how units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) should be valued. The changes aim to ensure consistent and transparent valuation practices across the sector by aligning with existing rules for quoted securities. The amendment applies to all payments banks operating under RBI’s regulatory framework.
Under the new rules, units of InvITs and REITs must be valued at their Net Asset Value (NAV) as disclosed by the respective trust. If an InvIT or REIT fails to compute or disclose NAV in the manner required by SEBI regulations, the value of its units will be treated as ₹1 for valuation purposes. This rule also covers units classified as infrequently traded under SEBI’s regulations.
The amendment specifies that other unquoted instruments issued by InvITs and REITs must follow the valuation methodology already outlined for such instruments in the RBI’s 2025 directions. This ensures uniformity in how payments banks assess the fair value of these investments, reducing discrepancies in financial reporting. The changes are effective from the date of issue of the amendment.
The RBI issued the amendment under Section 35A of the Banking Regulation Act, 1949, citing public interest and the need for clarity in investment valuation. The amendment is titled the Reserve Bank of India (Payments Banks – Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026, and applies to all payments banks regulated by the RBI.