NDB plans first rupee bond in India before March 2026
Why in the news
The New Development Bank intends to raise rupees from the Indian domestic market for the first time, supporting local-currency funding of projects in India.
Key facts
- NDB: multilateral development bank formed by BRICS (Brazil, Russia, India, China, South Africa).
- Timeline: first rupee bond before March 2026.
- Link: seen as a step towards internationalisation of the rupee.
About rupee-denominated bonds
Debt paper issued and repaid, with interest, in Indian rupees rather than foreign currency.
| Feature | Detail |
|---|---|
| Issuers | Indian government, corporates, NBFCs, banks; foreign bodies such as IFC and NDB |
| Investors | Domestic and foreign investors seeking exposure to India’s growth |
| Uses | Infrastructure, development projects, corporate financing |
| Domestic rupee bonds | Issued in India for local investors |
| Masala bonds | Rupee bonds issued abroad, listed on foreign exchanges, repaid in rupees |
Exam angle
- Illustration: if NDB issued a ₹4,000 crore bond, it would repay principal and interest in rupees.
- Masala = rupee bond sold overseas.