RBI To Launch New NRI Scheme For Sovereign Green Bonds In IFSC

RBI would launch a mobile app for accessing the Retail Direct portal to widen the reach of the RBI Retail Direct Scheme which was launched in November 2021.

Mumbai: With a view to facilitating wider non-resident participation in Sovereign Green Bonds, a scheme for investment and trading in these Bonds in the IFSC will be notified shortly, RBI Governor Shaktikanta Das announced on Friday.

Announcing the outcome of the RBI monetary policy review, Das added that the central bank has decided to allow SFBs to use permissible rupee interest derivative products.

"At present, Small Finance Banks (SFBs) are permitted to use only Interest Rate Futures (IRFs) for proprietary hedging. It has now been decided to allow SFBs to use permissible rupee interest derivative products. This will allow further flexibility to SFBs for hedging their interest rate risk and enhance their resilience," he said.

He also said that the RBI willlaunch a mobile app for accessing the Retail Direct portal to widen the reach of the RBI Retail Direct Scheme. "The RBI Retail Direct Scheme was launched in November 2021. It is now proposed to launch a mobile app for accessing the Retail Direct portal. This will be of greater convenience to retail investors and deepen the G-sec market," he said.

RBI on Friday kept the repo rate unchanged at 6.5 percent for the seventh consecutive time.

"After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth," RBI said.