Reserve Bank on Thursday permitted multilateral financial institutions
to invest in rupee-denominated bonds popularly known
as ‘masala bonds’ issued by Indian entities
“In order to provide more choices of investors to Indian entities issuing
rupee-denominated bonds abroad, it has been decided to also permit
multilateral and regional financial institutions where India is a member country,
to invest in these rupee-denominated bonds,” said an RBI notification.
Meanwhile, the RBI has withdrawn the instruction regarding
submission a fortnightly return on forwarding Rate Agreement
(FRA) and Interest Rate Swap (IRS) to the Monetary Policy Department
with a copy to various departments of the central bank.