Question : PERMISSION TO BANKS TO RAISE SUBORDINATE BONDS



(a) whether Reserve Bank of India has announced a policy to allow Indian banks to tap the overseas market to raise subordinated bonds;

(b) if so, the details thereof;

(c) whether this new policy will endanger the stability of Indian banks by allowing them to get into easy foreign debt;

(d) if so, the safeguards which will put in place to ensure that Indian banks do not go on a loan raising spree abroad; and

(e) the measures proposed by RBI to ensure that this policy will not create instability in the banking world?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS (SHRI ANANDRAO VITHOBAADSUL):

(a) No, Sir.

(b) to (e) Do not arise.