What is a Masala Bond?

What is a Masala Bond?

On September 29,2015, RBI allowed Indian corporates to raise money through issuance of rupee bonds outside of India. These are also called Masala Bonds. It was named Masala Bond to give it a local flavour and unique identity since it brings Indian culture and cuisine to mind. The framework for issuance of rupee bonds overseas falls within the External Commercial Borrowings (ECB) policy.