India to soon allow banks to pledge corporate bonds to borrow from RBI
As of now, banks can only pledge government securities to borrow from the Reserve Bank of India, and allowing them to pledge corporate bond could spur more buying of the debt by lenders.
BI Governor Raghuram Rajan with Deputy Governors SS Mundra, HR Khan and Urjit Patel during a press conference to announce the Reserve Bank of India's second monetary policy review in Mumbai on June 7, 2016. Photo: IANS