The RBI (Reserve Bank of India) on 15 May 2013 decided to launch Inflation Indexed Bonds (IIBs). The first tranche of the IIBs 2013-2014 for 1000 to 2000 crore rupees will be issued on 4 June 2013. The maturity period of these bonds will be 10 years. The total issue size will be 12000 to 15000 crore rupees in 2013 to 14.
The RBI will do on monthly basis to attract household savings of up to 15000 crore rupees so as to discourage investments in gold.
After the first tranche, bonds will be issued on the last Tuesday of every month. While the first series of the bonds will be open for all class of investors, the second series issue - beginning October - will be reserved exclusively for retail investors.