RBI allows multilateral agencies to invest in masala bonds

The Reserve Bank of India (RBI) has allowed multilateral and regional financial institutions to invest in rupee-denominated bonds (masala bonds) listed abroad. This is done to provide a greater choice of investors to Indian entities issuing these bonds abroad. Financial institutions of which India is a member country have been permitted to invest in these bonds. As a result, agencies like the Asian Development Bank (ADB) and the New Development Bank can also invest in masala bonds.