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RBI to re-examine foreign investment limit in government bonds - Rajan
October 1, 2014 / 9:59 AM / in 3 years

RBI to re-examine foreign investment limit in government bonds - Rajan

MUMBAI (Reuters) - The Reserve Bank of India will re-examine foreign investment limit in government debt, central bank governor Raghuram Rajan told analysts in a conference call on Wednesday.

Reserve Bank of India (RBI) Governor Raghuram Rajan attends a joint news conference with former Finance Minister Palaniappan Chidambaram (not pictured) in New Delhi March 7, 2014. REUTERS/Adnan Abidi/Files

Rajan said that he expects the allocation available for foreign investors in government bonds to increase as short-term debt matures, but added the central bank would over time “re-examine the limit and see what we can do.”

As of Tuesday, 96.6 percent of India’s $25 billion government debt limit for foreign institutional investors was utilised.

Rajan also said the central bank is talking to Euroclear and other organisations to allow trading in Indian government bonds to be settled through their systems.

The RBI kept its key policy repo rate unchanged at 8.0 percent on Tuesday.

Reporting by Swati Bhat and Neha Dasgupta, Writing by Himank Sharma; Editing by Rafael Nam

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