Govt green bonds can be a gauge for pvt sector fundraise: RBI Dy Governor

'Heartening to see banks increasing green exposure'

The pricing of the Centre’s sovereign green bonds can act as a benchmark for private sector players raising funds through rupee bonds for environmental, social and governance (ESG)-linked debt, Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao said on Thursday while addressing the Business Standard BFSI Insight Summit.

Finance Minister Nirmala Sitharaman during her Budget speech for 2022-23 had announced that the government would issue green bonds as part of its market borrowing plan for the current financial year.

“The proceeds [raised by the government via green bonds] would be deployed in public-sector projects which will help reduce carbon-intensive [sectors]