The Reserve Bank of India will meet on August 16 to discuss the government's proposed overseas sovereign bonds offering plan amid rising criticism about the plan, reported Bloomberg, citing people familiar with the matter.
Since announced by finance minister Nirmala Sitharaman in her maiden Budget speech on July 5, former RBI governors and economists have flagged risks involved in foreign currency debt. Raghuram Rajan had said that the plan is very risky with no real benefits.
Reuters had last week reported that Prime Minister's office had sought a review of the proposal after allies of his own party raised doubts about the plan. However, Sitharaman denied the reports that she was asked to review the offering plan in an interview with The Economic Times.
Bloomberg also added that the plan was marred by confusion after a finance ministry official was transferred abruptly.
The government last week appointed former finance secretary Subhash Chandra Garg was transferred to the power ministry. Garg had defended the plan saying that the sovereign bond proposal has a limited risk with immense benefit. He also added that he didn’t hear any criticism of the sovereign bond scheme from within the North Block.