The Reserve Bank of India (RBI) is assessing the option of investing in top-rated foreign corporate bonds to generate higher yields.
If the plan is approved, it would be a change from the central bank's existing strategy, where it typically invests in gold and sovereign debt, Mint has reported.
"Any investment in overseas corporate debt will, however, be in all likelihood a minuscule fraction of the forex reserves the RBI holds, which may not have a major bearing on overall yields but it will be a significant milestone," a source told the publication.
Moneycontrol could not independently verify the story.
Also read: Forex reserves cross record $600 billion-mark to hit new high
India's foreign exchange reserves reached a record $605 billion as on June 4, according to data released by the RBI on June 11.
In its annual report for fiscal year 2020-21, the RBI said it will "continue to explore new asset classes, new jurisdictions/ markets for deployment of foreign currency assets (FCA) for portfolio diversification and in the process tap advice from external experts, if required."
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