The Cabinet will on Thursday consider a proposal for the RBI to invest in about $4.3 billion worth of bonds issued by the International Bank of Reconstruction and Development (IBRD), a World Bank subsidiary, reports fe Bureau in New Delhi. An official said the plan was a part of RBI’s normal investment targets, wherein it invests in highly rated financial instruments. While the duration and interest due was not revealed, the official said the interest would be for long-term infrastructure projects.
Separately, the RBI today notified the new definition of 'control' as approved by the Cabinet on August 1. It also notified new FDI norms for 26 sectors including civil aviation, mining, multi-brand and single-brand retail. Economic affairs secretary Arvind Mayaram said that the new norms were in force prospectively and from August 22. He also said that the notification had to be placed in the next session of Parliament. In case there were objections to the FDI or control norms by any member, the matter will be resolved through debate and voice vote, he added.