Infrastructure bonds
What are Infrastructure bonds?
- Infrastructure bonds are long-term debt instruments with a maturity of at least seven years.
- They are issued to finance long-term development projects.
- Given that these instruments are used for providing finance to the infrastructure sector, banks do not have to maintain cash reserve ratio (CRR) and statutory liquidity ratio (SLR) on them.
Why in News?
- State Bank of India has concluded the sale of ₹10,000 crore worth of infrastructure bonds amid robust demand from investors.
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