RBI gives Indian banks the go-ahead to issue masala bonds

RBI said issuance of such bonds will help develop the market of rupee-denominated bonds overseas and also to provide an additional avenue to raise capital/long-term funds for Indian banks.

RBI gives Indian banks the go-ahead to issue masala bonds
RBI Governor Urjit Patel addresses a press conference in Mumbai after the monetary policy review meeting on Tuesday. PTI Photo by Shashank Parade
Written By: IANS
Updated: Thu, Nov 03, 2016
08:35 pm
Chennai, IANS
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The Reserve Bank of India (RBI) on Thursday said Indian banks can issue masala bonds or rupee-denominated bonds issued overseas to augment their capital and long-term funds.

In a statement, the RBI said issuance of such bonds will help develop the market of rupee-denominated bonds overseas and also to provide an additional avenue to raise capital/long-term funds for Indian banks.

The banks can issue perpetual debt instruments qualifying for inclusion as additional tier 1 capital and debt capital instruments qualifying for inclusion as tier 2 capital and long-term rupee-denominated bonds overseas for financial infrastructure and affordable housing.
 

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