Home   »   Economy and Finance   »   RBI allows NRIs to buy Sovereign...

RBI allows NRIs to buy Sovereign Green Bonds

The Reserve Bank of India (RBI) has issued a notification, granting Non-Resident Indians (NRIs) unrestricted investment access to the Government’s Sovereign Green Bonds for the fiscal year 2023-24.

Fully Accessible Route Designation

  • The RBI circular designates all Sovereign Green Bonds issued in 2023-24 as ‘specified securities’ under the Fully Accessible Route (FAR).
  • This move enhances investment opportunities for NRIs in these environmentally focused bonds.

Immediate Applicability

  • As per the notification issued on Wednesday, the directives are effective immediately, signaling an urgency in implementing the regulatory changes.

Government’s Green Bond Borrowing Plan

  • The government aims to raise Rs 20,000 crore through green bonds in the current financial year.
  • This aligns with its commitment to sustainable financing, emphasizing projects with positive impacts on climate and the environment.

Purpose of Green Bonds

  • Green bonds are financial instruments dedicated to funding projects with direct environmental benefits.
  • These projects encompass renewable energy, clean transportation, and green buildings.
  • The issuance of such bonds reflects a global push toward sustainable financing and responsible investing.

NRIs and Investment Opportunities

  • The RBI’s decision opens doors for NRIs to actively participate in financing eco-friendly initiatives by investing in Sovereign Green Bonds.
  • This aligns with the growing trend of environmentally conscious investments globally.

Find More News on Economy Here


RBI allows NRIs to buy Sovereign Green Bonds_4.1