BPSC 60th-62nd Prelims Exam 12 Feb 2017 Solved Paper

Masala bonds are issued outside India but it is denominated in Indian Rupees, rather than the local currency. The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India. Therefore, Masala Bonds is a bond through which Indian entities can raise money from foreign markets in rupees, and not in foreign currency.