NABARD Approved to Issue ₹19,500 Crore in Deep-Discount Bonds

Imagine NABARD, a bank, got permission to sell special IOUs called deep-discount bonds.

These bonds are bought for less than their value, and you get the full amount back later, like a coupon-free sale.

The government gave them permission to sell a lot of these bonds.

Other companies have also been allowed to sell similar bonds, but investors haven't been very excited about buying them.

The bonds have tax benefits and lock in returns without worry about interest rates, but there hasn't been enough demand, which is a problem.