RBI said to oppose overseas settlement of debt

Mumbai

INDIA'S central bank is opposed to a proposal to allow overseas settlement of the nation's sovereign debt because such a move could lead to higher currency volatility, people familiar with the matter say.

The Reserve Bank of India (RBI) doesn't favour the settlement of rupee bonds on Euroclear Bank SA or Clearstream Banking SA platforms, but wants foreigners to engage local custodians or depositories instead, the people said, asking not to be named as they aren't authorised to speak to the media.