LIC Urges RBI to Introduce 100-Year Government Bonds

Mumbai, March 18 – Life Insurance Corporation of India (LIC) has urged the Reserve Bank of India (RBI) to introduce long-term government bonds, including a 100-year tenure, to support long-term investment needs. A senior LIC official confirmed the request on Tuesday, stating that such bonds would align with the insurer’s long-duration policies.

As per agency report, LIC’s Managing Director and CEO, Siddhartha Mohanty, highlighted the necessity for extended-tenure bonds, given that the company sells life insurance policies that span an entire lifetime. While RBI currently allows 20-30-year bonds and has recently approved 40-year bonds, Mohanty expressed optimism that 50-year and 100-year bonds could also be introduced.

Speaking at the GCA25 event in Mumbai, he mentioned that LIC representatives have been in discussions with RBI regarding this proposal and that the central bank is actively considering it. He also pointed out that while several countries have issued 100-year bonds in global markets, India has yet to take this step due to limited demand and low secondary market activity.

Mohanty emphasized that introducing ultra-long-term bonds would provide insurers and pension funds with a stable investment avenue while supporting long-term infrastructure projects in the country.