RBI to launch revamped inflation-indexed bonds soon

Tags: News
The Reserve Bank today said it is in discussion with the government to revamp inflation indexed bonds to attract more retail investors.

Inflation indexed bonds were introduced last year by the central bank but were not well received due to its complex structure.

"We had launched inflation indexed bonds that were not successful. We are coming out with the revised version," RBI Deputy Governor H R Khan told reporters on the sidelines of an event here today.

He said that timing of the inflation indexed bonds launched last time was not possibly right and there were issues regarding understanding of the product and also related to interest pay out.

"We have suggested few things to the government. One, in terms of increasing the spread and whether we can have non-cumulative option. They (government) are considering, let us see," Khan said.

He said that the central bank was looking to offer quarterly interest pay out unlike last time on quarterly basis when the payout was only on maturity.

Khan, however, did not give any timeline for the launch of the revise inflation indexed bonds.

When asked whether there was any plan to increase foreign institutional investors' investment limit in the government bonds, the deputy governor said, "right now there is no such discussion".

Khan said the central bank and the government are in the process of preparing framework for differentiated banking licence.

"We have lot of internal discussion going on. We are also in dialogue with the government. We have some framework given by Nachiket Mor committee which are being discussed intensively within the RBI and with the government," he said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The world is moving away from fast food like never before

    Despite spending $1.8 billion every year on worldwide advertising and promotion, McDonald’s sales are plummeting.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schoettli

It’s time for Japan to step out of its shell

The execution of a Japanese hostage by ISIS has sho­cked ...

Zehra Naqvi

The urge to tell stories

One wants to tell a story, like Scheherzade, in order ...

Bubbles Sabharwal

Truth about truth

The question to ponder is, “is it the truth because ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture