RBI Adds 10-Year Sovereign Green Bonds to FAR for Non-Residents

Current Context: The Reserve Bank of India (RBI) has recently added 10-year Sovereign Green Bonds (SGrBs) to the list of designated government securities that non-residents can purchase through the Fully Accessible Route (FAR).

• This initiative is designed to attract foreign investment in environmentally sustainable projects in India.
• The inclusion of these green bonds in the FAR aims to support the government's efforts in promoting sustainable development and financing green projects.
• This move is expected to boost the participation of international investors in India's green financing landscape, furthering the country's commitment to environmental sustainability.

Question:

1 What type of bonds has the RBI recently added to the list of designated government securities for non-residents through the Fully Accessible Route (FAR)?

• A) Municipal Bonds
• B) Corporate Bonds
• C) Sovereign Green Bonds (SGrBs)
• D) Treasury Bills

Answer: C) The RBI has added 10-year Sovereign Green Bonds (SGrBs) to the list of designated government securities that non-residents can purchase through the Fully Accessible Route (FAR).