New Delhi, Feb. 27 -- The Indian government may consider issuing 50-year on-tap bonds in the next fiscal (FY26), in a bid to encourage insurance companies to subscribe and better manage their business, two people familiar with the matter said.
The move, under consideration of the Union finance ministry, with the help of the Reserve Bank of India (RBI), would also help the government nudge the industry towards its target of insurance for all by 2047, these people said on the condition of anonymity.
Investing in these 50-year on-tap bonds would provide insurers with a stronger financial cushion needed to operate a business that handles long-term contracts. Life insurance companies, for instance, give out policies that may span decades.
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