The government has approved a proposal to invest 4.3 billion dollars in World Bank bonds which will help the country secure additional funding from the multilateral agency for infrastructure projects.

Information and Broadcasting Minister Manish Tewari told reporters that the decision was taken after a Cabinet meeting Thursday evening.

The Reserve Bank of India, RBI, would invest in the bonds floated by the International Bank for Reconstruction and Development. The bonds would be of various tenures and the RBI would get return on investment.

A Finance Ministry official had earlier said India's headroom for borrowing from the World Bank is reaching the limit and investing in these bonds will widen the scope for more loans.