Q. With reference to Masala Bonds, consider the following statements:
1.They are rupee-denominated bonds issued outside India by Indian entities.
2.These were introduced in India by the Reserve Bank of India (RBI).
3.Both government and private entities in India can issue Masala Bonds.
How many of the above statements are correct?
Answer: B
Notes:
Explanation:
- Statement 1 is correct — Masala Bonds are rupee-denominated bonds issued overseas by Indian entities.
- Statement 2 is incorrect — Masala Bonds were introduced by the International Finance Corporation (IFC), not RBI.
- Statement 3 is correct — Both government and private entities are permitted to issue these bonds.
Source- TH
