Investor lobbies and tax lawyers estimate the bill for international funds and banks could be as high as $8 billion
The new bond was changing hands at 7.72 per cent.
Traders believe the RBI will step in more strongly, if the rupee starts falling towards 65
S&P warned about spending on subsidies and heavy government debt.
The RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18.
RBI governor Raghuram Rajan says a cut in cash reserve ration will not at all impact lending rates.
Market regulator Sebi to support stert-ups raise funds.
Reserve Bank of India (RBI) Governor Raghuram Rajan's decision to cut rates last week surprised even top officials.
Will RBI chief have the final say, in the form of a veto
India needed more specialists within government
India's banks rely on overnight borrowings to fund longer-term lending.
India allows foreign investors to buy upto $81 bn
Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February.
Earlier, India said the headline annual consumer price inflation accelerated to 5 per cent, compared with a 4.4 per cent print in November.
India only has 3.5 million workers undergoing skills courses a year, compared with 90 million in China
The Reserve Bank of India sold dollars via state-owned banks around 62.3575 per dollar to contain the rupee's fall, traders said.
The Reserve Bank of India kept interest rates unchanged at 8.0 percent on Tuesday as widely expected, staying focused on containing inflation while adopting a more dovish tone in response to the government's call for help to revive economic growth.
Large state-run entities and business houses will not be allowed to set up small finance banks, which will have to comply with statutory reserve requirements.
In the offshore non-deliverable forwards, the one-month contract was at 62.26/36, while the three-month was at 62.83/93.