MUMBAI Reserve Bank of India is not looking to scrap foreign investment limits in government bonds, Governor Raghuram Rajan said on Wednesday, adding it would be "premature" to do that before the global unwinding of stimulus measures and the start of a rate hike cycle.
The inclusion of government bonds into global indices is still in at a discussion stage, Rajan added, and reiterated the need to open the limits at a "measured pace", in a teleconference with analysts and researchers.
Separately, RBI Deputy Governor H.R. Khan said the central bank is in talks with the government to auction cash balances to improve liquidity management.
Khan also said the RBI is talking to the government about providing real-time information on their cash balances.
(Reporting by Neha Dasgupta and Suvashree Dey Choudhury; Editing by Anupama Dwivedi)
Trending On Reuters
A recovery in India's credit growth could elude the country's banks until early 2016, despite an economy that in the first three months of this year is expected to have outpaced China. Full Article