Question

As per the RBI guidelines, which one of the following is the minimum tenure of Masala Bonds that an Indian company can issue offshore?

• A. Five years
• B. Four years
• C. Three years
• D. Two years

Answer 1

The correct option is C Three years

Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. The Reserve Bank of India had decided to cut the minimum maturity period for rupee debt issued abroad — masala bonds by domestic companies to three years from five years.