Mumbai, Mar 18 (PTI) – Life insurance company LIC wants the Reserve Bank of India (RBI) to create longer government bonds, even ones that can last up to 100 years. Siddhartha Mohanty, LIC’s Managing Director, explained that this is important because they sell whole life insurance policies, which require long-term investments.
Currently, the RBI allows bonds that last 20 to 30 years and has even approved a 40-year bond. Mohanty mentioned, “I hope we can get 50-year and even 100-year bonds. Our team talks with the RBI often about this, and they are considering it.”
He also noted that in many countries, 100-year bonds are already available, but in India, they haven’t been introduced yet because there isn’t much demand and the secondary market isn’t very active. Mohanty emphasized that LIC is actively investing in government securities and participates in over 20% of new issuances.
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