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    Question

    What is the purpose of the Reserve Bank of India (RBI) introducing a Fully Accessible Route (FAR) for investments in sovereign green bonds?

    A To encourage non-residents to invest in green bonds Correct Answer Incorrect Answer
    B To restrict investments by non-residents in green bonds Correct Answer Incorrect Answer
    C To eliminate green bonds from the market Correct Answer Incorrect Answer
    D To issue green bonds only to government agencies Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    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 ‘specified securities’ under the FAR.  The government plans to borrow Rs 20,000 crore through green bonds in the current financial year.

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