By BS Reporter
The Reserve Bank of India (RBI) today said inflation index bonds, which will hedge investors' savings against rising prices, are likely to be launched in a month.
"(It will be launched) probably in a month's time. We are in the advanced stages of discussion with the government," RBI Deputy Governor HR Khan said on the sidelines of an event organised by CII at the ADB annual meet here.
In Budget 2013-14, Finance Minister P Chidambaram announced inflation indexed bonds or inflation indexed national security certificates to protect savings of the poor and middle class from inflation and offer alternative to investment in non-productive assets like gold.
Khan said retail participation in the bonds, which would be linked to wholesale price index based inflation, would be provided right from the beginning, but at a later point the RBI may provide a separate window or separate sort of instrument only for retail.
"There is something called a non-competitive bidding quota which is 5%. It doesn't get filled up, we are thinking of increasing this to 10% but we need to finalise this," he said.