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 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
08:35 pm
Chennai, IANS
Andhra Pradesh, Telangana best states to do business in India: Where UP, West Bengal, Delhi, Maharastra stand? Check full list
Bank ATMs numbers falls to 2.07 lakh; reason for you to worry? Check out statsThe 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.
Lowering capital buffer detrimental to banks, economy: RBI
Manufacturing sector posts strong sales growth in Q2: RBI
Operational independence of central banks important for carrying out their responsibilities: IMF By Lalit K Jha