December 09, 2010 10:57 pm | Updated October 17, 2016 01:35 pm IST - MUMBAI:
With inflation hovering at 8.58 per cent, the Reserve Bank of India on Thursday proposed to come out with a new type of indexed bond linked to the rate of price rise. It has asked stakeholders to share their views on the proposal by December 31.
In the case of capital index bonds only the principal repayment at the time of redemption is adjusted to inflation, whereas under new indexed bond, the principal will be indexed and the coupon calculated on the basis of the indexed principal.
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