RBI allows NRIs to buy Sovereign Green Bonds

The Indian government plans to borrow Rs 20,000 crore through green bonds in the current financial year

Mumbai: The RBI has issued a notification allowing NRIs to invest, without any restrictions, in the Government’s Sovereign Green Bonds issued for 2023-24.

It has now been decided to designate all Sovereign Green Bonds issued by the government in the fiscal year 2023-24 as specified securities under the FAR (fully accessible route), the RBI circular states.

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The directions in the notification, issued on Wednesday, are applicable with immediate effect, RBI said.

The government plans to borrow Rs 20,000 crore through green bonds in the current financial year. Green bonds can be issued by countries, companies and multilateral organisations to only fund projects that have positive impacts on the climate and environment and provide investors with fixed income payments.

Examples of green projects include renewable energy, clean transportation and green buildings.