What is the purpose of the RBI's new scheme for Sovereign Green Bonds?

Key Highlights of the Scheme:

The RBI’s new scheme opens the door for eligible foreign investors in the IFSC to invest in Sovereign Green Bonds. This allows them to help fund projects that are good for the environment in India.

Before this scheme, only foreign portfolio investors (FPIs) registered with SEBI could invest in these bonds using existing routes for government securities.

In April 2023, the RBI announced a plan to make it easier for non-residents to invest in these bonds. This move aims to encourage more international investors to participate in India’s green finance market.