The Reserve Bank of India (RBI) will launch inflation-linked bonds every month to attract household savings of up to Rs.15,000 crore in fiscal 2013-14, so as to discourage investments in gold.
The RBI said that in consultation with Government of India, it has decided to launch Inflation Indexed Bonds (IIBs).
The first tranche of IIBs 2013-14 for between Rs.1,000 and Rs. 2,000 croress will be issued on June 4.
The maturity period of these bonds will be for ten years. The total issue size will be between Rs.12,000 and Rs. 15,000 crore rupees in 2013-14.
After the first tranche, bonds will be issued on the last Tuesday of every month.
While the first series of the bonds will be open for all class of investors, the second series issue - beginning October, and will be reserved exclusively for retail investors.