The Reserve Bank of India (RBI) has released a notification that grants Non-Resident Indians (NRIs) unrestricted investment access to the Government's Sovereign Green Bonds for the fiscal year 2023-24.
“It has now been decided to designate all Sovereign Green Bonds issued by the government in the fiscal year 2023-24 as ‘specified securities’ under the FAR (fully accessible route),” the RBI circular states.
The directions in the notification, issued on Wednesday, are “applicable with immediate effect,” RBI said.
In the ongoing financial year, the government aims to secure Rs 20,000 crore through the issuance of green bonds. Green bonds, which can be issued by countries, companies, and multilateral organizations, are specifically earmarked to finance projects with positive impacts on the climate and environment.
These projects often involve initiatives such as renewable energy, clean transportation, and green building infrastructure, providing investors with fixed income payments.
(With Agency Inputs)
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