RIB Full Form-Resurgent India Bond

Resurgent India Bonds: A Strategic Investment for NRIs

Resurgent India Bonds (RIBs), launched in 1998 by SBI for the Government of India, attracted NRI investments to bolster India’s foreign exchange reserves.

This article explores the features, benefits, and impact of RIBs.

What are Resurgent India Bonds?

RIBs were fixed-income instruments issued in USD, GBP, and DEM, enabling NRIs to invest in India’s growth with competitive returns.

Key Features of RIBs

RIB characteristics:

• Issuer: SBI for Government of India.
• Investors: NRIs and OCBs.
• Currencies: USD, GBP, DEM.
• Tenure: 5 years.
• Interest: Competitive fixed rates.
• Tax Benefits: Exempt from income/wealth tax.
• Repatriability: Fully repatriable.

Why Were Resurgent India Bonds Issued?

RIBs addressed India’s 1990s economic challenges, including low forex reserves and global instability, attracting NRI capital for economic stability.

Benefits of Resurgent India Bonds

RIB advantages:

• High Returns: Better than fixed deposits.
• Tax Exemptions: No income/wealth/gift tax.
• Repatriability: Easy fund transfer.
• Forex Boost: Strengthened India’s reserves.

Success and Impact of RIBs

RIB outcomes:

• Funds Raised: $4.2 billion collected.
• Rupee Stability: Supported during volatility.
• Credibility: Enhanced India’s global standing.
• Legacy: Inspired schemes like IMDs.

Resurgent India Bonds were a landmark initiative, empowering NRIs to support India’s growth while setting a precedent for diaspora-driven economic development.

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