The RBI circular designates all Sovereign Green Bonds issued in 2023-24 as ‘specified securities’ under the Fully Accessible Route (FAR)
The Reserve Bank of India (RBI) has issued a notification, granting Non-Resident Indians (NRIs) unrestricted investment access to the Government’s Sovereign Green Bonds for the fiscal year 2023-24.
The RBI circular designates all Sovereign Green Bonds issued in 2023-24 as ‘specified securities’ under the Fully Accessible Route (FAR). This move enhances investment opportunities for NRIs in these environmentally focused bonds. As per the notification issued on November 8, the directives are effective immediately, signaling an urgency in implementing the regulatory changes.
The government aims to raise Rs 20,000 crore through green bonds in the current financial year.
This aligns with its commitment to sustainable financing, emphasizing projects with positive impacts on climate and the environment.
The RBI’s decision opens doors for NRIs to actively participate in financing eco-friendly initiatives by investing in Sovereign Green Bonds. This aligns with the growing trend of environmentally conscious investments globally
Green bonds are financial instruments dedicated to funding projects with direct environmental benefits.These projects encompass renewable energy, clean transportation, and green buildings.
The issuance of such bonds reflects a global push toward sustainable financing and responsible investing.
The RBI’s decision opens doors for NRIs to actively participate in financing eco-friendly initiatives by investing in Sovereign Green Bonds. This aligns with the growing trend of environmentally conscious investments globally.
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