The UK, however, has said that the new visa scheme will be very "tightly targeted" at a small number of applicants.
The clarification came a day after Commerce and Industry Minister Anand Sharma urged his UK ministerial colleagues to clarify Britain's position on the proposed scheme to introduce a 3,000 pounds bond for visitors from six high-risk countries, which includes India, Pakistan, Bangladesh, Sri Lanka, Nigeria and Ghana.
"But I have been assured that such a proposal may have been mooted but has not been discussed or approved by the UK Cabinet," Sharma told PTI here yesterday after his meetings with UK ministers Vince Cable and Oliver Letwin.
"I take that assurance and have requested my UK ministerial colleagues to clarify the situation to not allow any speculation to be magnified," he added.
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"The UK government remains committed to tackling immigration abuse and is looking at a range of options. One of those options is a financial bond.
"The government intends to run a pilot scheme for such bonds, tightly targeted at a small number of visa applicants assessed to pose a high risk of overstaying," a spokesperson for the British High Commission in India said.
"But no decisions have been taken on the detail of how such a pilot scheme would work in practice.