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Journalism of Courage
The Reserve Bank of India RBI is likely to launch the proposed inflation-indexed bonds within a month. The instruments,designed to help investors hedge their savings against inflation and discourage demand for gold,are expected to have a maturity of seven to 15 years.
This was announced in the Budget. We have also announced in our auction calendar and we hope to issue the bonds within a months time, said RBI deputy governor HR Khan on the sidelines of an event organised by National Housing Bank here.
As per the plan,the bonds will be linked to the wholesale price index and will be indexed every six months. Other design features of the bonds are in discussion with the finance ministry.
Right now the plan is that it will be issued like any other government security.What we are proposing is that non-competitive portion retail portion,we have higher percentage of bidding,it could be 10 per cent,it could be 15 per cent,or 20 per cent. So,it will be earmarked for the small fellows,trusts or individual,those who have gilt accounts, Khan said,adding that retail investors can buy the bonds without participating in the auction at the cut off price. Then after few months,we will think of some certificate based on this, he added.
The finance ministry has also begun internal discussions on the issue and about Rs 20,000 crore of inflation indexed bonds would be floated in the first half of the fiscal.
The RBI as well as the government have been keen to offer such instruments as it would help reduce demand for gold and would also help channelise household savings.
Money laundering allegations: RBI to initiate action against banks
Reserve Bank of India deputy governor HR Khan on Thursday said the central bank is initiating action against ICICI Bank,HDFC Bank and Axis Bank in connection with allegations of money laundering by web portal Cobrapost.
Actions are on the way. Scrutiny has been done,action is being taken both in respect of systemic level and at the individual banks, he said.
I will not be able to tell you the details but actions are being taken, he said. Asked when RBI would release the investigation report,he said,I cant give you time frame but it will be out soon.
