Question
What is the purpose of the Reserve Bank of India (RBI)
introducing a Fully Accessible Route (FAR) for investments in sovereign green bonds?Solution
The Reserve Bank of India (RBI) has announced a fully accessible route (FAR) for investments by non-residents in sovereign green bonds to be issued during the current financial year. Earlier, sovereign green bonds issued during 2022-23 were included in the FAR list. It has now been decided to also designate all Sovereign Green Bonds issued by the Government in the fiscal year 2023-24 as āspecified securitiesā under the FAR.Ā The government plans to borrow Rs 20,000 crore through green bonds in the current financial year.
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