Now banks can raise funds overseas through "Masala Bonds"

(Last Updated On: August 6, 2019)

The Reserve Bank has now allowed banks to raise funds by floating Masala Bonds or Rupee-Denominated Bonds in overseas market as part of an additional avenue to raise long-term funds.

Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. 

“In line with the announcement made, with a view to developing the market of rupee-denominated bonds overseas, it has been decided, after consultation with the government, to allow Indian banks within the limit set for foreign investment in corporate bonds (Rs 2,44,323 crore at present) to issue bonds,” RBI said in a notification.


Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.