Not considering raising FII debt limit in govt debt right now: RBI

Government is not considering raising the foreign investment limit in government bonds immediately, Reserve Bank of India Deputy Governor H R Khan said on Thursday.

"Right now there is no such discussion," Khan said, in response to a question on raising the foreign institutional investment (FII) limit in government debt, on the sidelines of a banking seminar.

Government allows FIIs of up to $30 billion in government bond, including $20 billion for all and $10 billion for specific investors like foreign central banks, sovereign wealth funds, pension funds and insurance funds.

The limit under $20 billion has been fully exhausted following an auction of the residual Rs 7,152 crore on Wednesday.

The RBI is also in discussions with government to improve product features of inflation-indexed bonds that had failed last year, possibly due to wrong timing, and may now consider quarterly interest payouts, Khan said.