India’s RBI Mulls New Move Using Foreign Bonds to Prop Up Rupee

India’s central bank is weighing a plan for state lenders to sell foreign-currency bonds, mulling a tool last used nearly three decades ago to draw capital inflows and shore up the beleaguered rupee, according to people familiar with the matter.

Reserve Bank of India officials discussed a proposal that would see lenders issue foreign-currency bonds, potentially with five-year maturities, the people said, asking not to be named as the talks are private. Discussions are preliminary and no decision has been made, they said.