RBI extends range of collateral for interbank transactions

The Reserve Bank of India extended the range of collateral that can be used for repo transactions on the country's interbank market to include bonds issued by multilateral financial institutions such as the World Bank and Asian Development Bank.

Currently, such collateral is limited to commercial papers, certificate of deposits, non-convertible debentures, and listed corporate debt securities of more than one year maturity and rated AA or above.

The move will help develop the corporate debt market, RBI said in a circular on Tuesday.

(Reuters)