The Reserve Bank will soon come up with guidelines that will allow banks to provide credit enhancements to be issued by corporate borrowers, Deputy Governor S S Mundra said on Wednesday.
“There is another serious work in progress, which is to allow banks to provide credit enhancement to be issued by corporate borrowers... Hopefully, we will be able to come up with the guidelines on this subject,” Mundra said while delivering an inaugural address at a summit on Financing India's Growth -- Way Forward, organised by PHD Chamber.
Mundra also said RBI a few months ago allowed banks to issue long-term infra bonds, and certain exemptions were given to them so as to support growth in the bond market.
“The deepening of the bond market has been a subject. I think several committees worked on it for decades. And right now, there is a committee working on it,” he added.