India considering allowing banks to buy infrastructure bonds: RBI
Country's apex bank, the Reserve Bank of India is considering allowing banks to
buy infrastructure bonds.
The main is to jumpstart a market that has suffered from low
trading volumes after launching last year with knowledge of the central bank's
The RBI allows banks to buy infrastructure
bonds would mark a reversal for the central bank, which last year allowed
lenders to only issue the debt, while limiting purchases to investors such as
pension funds, provident funds, and insurers.
That limitation has backfired, according to bankers,
severely crimping trading volumes in the market since lenders are the biggest
buyers and traders in debt markets.