December 18, 2013 9:33 PM

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RBI to launch inflation-indexed national saving securities

RBI will soon launch Inflation Indexed National Saving Securities linked to consumer price inflation. Addressing the post policy tele-conference with analysts in Mumbai on Wednesday, RBI Governor Raghuram Rajan said that the apex bank will come up with inflation indexed certificates- IISCs, this month.He said that IISCs will give savers the opportunity to invest in assets that produce real returns. He informed that the rate of interest for the product's inaugural run will be 1.5 per cent above the annual average of the CPI.The certificates will be second in a series of products after the Inflation Indexed Bonds which have been launched to counter the effects of price rise for investors.In case of IIBs, the return was linked to the wholesale price index, where the principal is adjusted for inflation, and then the interest is paid half-yearly.

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