LIC Pushes for Century-Long Bonds to Secure Future Investments

LIC is urging the Reserve Bank of India to offer long-term government bonds, including 100-year options. The initiative by CEO Siddhartha Mohanty aims to support whole life insurance policies. Currently, the RBI permits up to 40-year bonds, while 100-year bonds are common globally but not yet in India.

The Life Insurance Corporation (LIC) is advocating for the Reserve Bank of India (RBI) to introduce long-term government bonds, with durations extending up to 100 years, according to senior officials.

Siddhartha Mohanty, Managing Director and CEO of LIC, highlighted the necessity for such bonds to complement the insurer's whole life policies, which typically require long-term investments.

Currently, RBI allows bond durations of 20 to 40 years, but Mohanty remains hopeful that a 100-year bond issuance could be in the pipeline, a move he believes would align India with global practices despite local market challenges.

(With inputs from agencies.)