RBI asks banks to issue bonds to retail investors

The Reserve Bank of India (RBI) has asked banks to issue bonds to retail investors so as to deepen the corporate debt market.

It has encouraged banks to consider the option of raising subordinated debt for Tier II capital by issuing bonds to retail investors.

In general practice, banks build up Tier II capital by issuing subordinated debt to banks and large investors.

Month: Current Affairs - January, 2013