No hike in FII debt limit now: RBI

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Government is not considering raising the foreign investment limit in government bonds immediately, Reserve Bank of India Deputy Governor H R Khan said.

"Right now there is no such discussion," Khan said on the sidelines of a banking seminar.

Government allows FIIs of up to USD 30 billion in government bond, including USD 20 billion for all and USD10 billion for specific investors like foreign central banks, sovereign wealth funds, pension funds and insurance funds.

The limit under USD 20 billion has been fully exhausted following an auction of the residual Rs 7,152 crore on Wednesday.

The RBI is also in discussions with government to improve product features of inflation-indexed bonds that had failed last year, possibly due to wrong timing, and may now consider quarterly interest payouts, Khan said.

Story first published: Thursday, June 12, 2014, 23:00 [IST]
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