Reserve Bank of India (RBI) Deputy Governor HR Khan informed that the central bank was finalising the features of the proposed inflation-indexed bonds with the central government and the final guidelines would be issued in a month.
Speaking on the sidelines of an international conference, Khan said one or two design issues are yet to be sorted out between the RBI and the government.
The inflation-indexed bonds may be made available under the window provided for auction of government securities. The only difference is it will form part of allocation for non-competitive bidding.
The RBI will allocate this for small entities, individuals or trusts and even common man can buy these bonds through primary dealers.
According to RBI, in non-competitive portion there is higher percentage of bidding, say, 10 per cent or even 15 or 20 per cent for inflation-indexed bonds.
After a few months, the RBI will look at introducing some certificates (National Savings Certificates, for instance) for inflation indexation, he said.
Meanwhile, he said a a dedicated external commercial borrowing (ECB) window would be provided for ‘affordable housing’ even in current fiscal. The $1 billion ECB window for affordable housing will be continued this year as well, he said.