As per the RBI guidelines, which one of the following is the minimum t

As per the RBI guidelines, which one of the following is the minimum tenure of Masala Bonds that an Indian company can issue offshore ?

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Five years

Four years

Three years

Two years

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC NDA-2 – 2016

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The correct answer is Three years.

As per the Reserve Bank of India (RBI) guidelines for issuing Masala Bonds (INR denominated bonds issued overseas), the minimum maturity period was set at 3 years.

Specifically, RBI guidelines around the time Masala Bonds became prominent stipulated a minimum maturity of 3 years for issues up to USD 50 million equivalent per financial year per issuer. For issues exceeding USD 50 million equivalent, the minimum maturity was set at 5 years. The question asks for the minimum tenure that *an* Indian company can issue, which refers to the lowest possible tenure allowed under the guidelines, which is 3 years.

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