LIC requests RBI to introduce 100-year government bonds

Mumbai, March 18 (PTI)—A senior official stated Tuesday that the life insurance behemoth LIC has asked the Reserve Bank to issue long-term government bonds, including 100-year paper. Siddhartha Mohanty, Managing Director and Chief Executive of LIC, said the insurer sells whole life policies, which need investments in long-term bonds.

Mohanty told reporters on the sidelines of the GCA25 here that the RBI has been approving bonds with terms of 20 to 30 years and has also approved a 40-year bond. "I am also expecting 50-year, even 100-year bonds. Our people are discussing this from time to time with RBI, and they are also considering this," he said.

He added that although several nations issue 100-year bonds on the international market, India has not yet done so because of minimal secondary market activity and little demand.