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.
- 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.