India will make corporate bonds part of fundraising for projects, says RBI official

It plans on reducing the reliance of companies on a struggling banking sector for funding.

India will make it compulsory for companies to raise funds via corporate bonds for some projects such as infrastructure, said Chandan Sinha, an executive director at the Reserve Bank of India (RBI), on Tuesday.

"We are already talking of moving the corporates towards bonds financing. There would be a compulsory recourse for part financing of their projects," he said at a conference on corporate bonds in Mumbai.

The comments come as India is looking to develop its corporate bond markets, reducing the reliance of companies on a struggling banking sector for funding.