Govt to issue retail inflation bonds in 10 days: official

Govt plans to launch bonds linked to consumer price inflation for retail investors in the next 7-10 days, a senior finance ministry official said on Friday.

"They are (inflation-indexed bonds) going to be introduced in a week or 10 days," Arvind Mayaram, the economic affairs secretary at the finance ministry, told reporters on the sidelines of an event.

The Reserve Bank of India said in its policy statement last month that inflation-indexed securities for retail investors of 10-year tenor would be linked to the new (combined) consumer price index.

The rate of interest on these securities would comprise a fixed rate plus inflation. Interest would be compounded half-yearly and paid cumulatively at redemption, the RBI statement said.