In a bid to boost infrastructure development, the Reserve Bank has allowed banks to invest in long term infra bonds of other lenders. In a notification yesterday, the RBI said that after a review, it has been decided that henceforth, banks can invest in the long term bonds issued by other banks. However, it said, the primary objective of allowing regulatory exemptions on Cash Reserve Ratio and Statutory Liquidity Ratio requirements as well as priority sector lending is to encourage issue of long term bonds for lending to infrastructure projects and affordable housing. It said, such long term bonds are exempted from mandatory regulatory norms like CRR and SLR if the money raised is used for funding of such projects. Banks can issue long-term bonds with a minimum maturity of seven years to raise resources for lending to long term projects in infrastructure sub-sectors, and affordable housing.