India's benchmark 10-year bond yield was trading at 5.96 per cent by 0852 GMT, down 1 basis point on the day
More cash for shadow banks is good news for the Indian economy, which relies on these firms to provide financing to everyone from tailors to business giants
Would increase compliance burden for tax payment
The 10-year bond yields closed the year at 6.555 per cent, from its January 1 level of 7.418 per cent. Bond prices rise, yields fall.
The rupee started at 69.44 a dollar, and on December 27, closed at 71.32 a dollar.
Air India last week sought fee bids from bankers as it looks to borrow as much as Rs 70 billion by March 31