RBI to discuss with govt issuance of sovereign bonds: Das

RBI Governor Shaktikanta Das Monday said the central bank will discuss with the government the issuance of overseas sovereign bonds, a instrument that will help reduce dependence on the domestic market for bridging fiscal deficit.

The Reserve Bank of India (RBI) issues bonds on behalf of the government as part of the resource mobilisation exercise to fund gap between revenue and expenditure.

Expressing his satisfaction over the government's move to slash fiscal deficit target, Das said it will help improve investment by the private sector as crowding out impact will be less.

After the customary post-budget meeting with Finance Minister Nirmala Sitharaman, he said, "The government has made a budget announcement and we will interact with the government. I am sure the government will have a discussion with the RBI. Whatever we need to discuss with the government, will be discussed internally."