The Reserve Bank of India has amended the framework for Foreign Portfolio Investor investments in government securities by removing three General Route restrictions: the short-term investment limit, the security-wise limit and the concentration limit. It has also merged the separate general and long-term sub-categories into a single investment limit for Central Government Securities and for State Government Securities, while adding more securities to the Fully Accessible Route. For financial year 2026-27, the revised combined limits are INR 462,490 crore for Central Government Securities and INR 153,043 crore for State Government Securities for April 2026 to September 2026, rising to INR 477,006 crore and INR 164,242 crore respectively for October 2026 to March 2027. Under the Fully Accessible Route, specified securities will now also include all new 15-year, 30-year and 40-year government security issuances, all new Sovereign Green Bond issuances in 5-year, 7-year, 10-year, 15-year, 30-year and 40-year tenors, and three existing securities: 6.68% GS 2040, 7.24% GS 2055 and 7.71% GS 2066. The changes take effect immediately through an updated Master Direction.
Reserve Bank of India2026-06-05
Reserve Bank of India removes three General Route limits for Foreign Portfolio Investors in government securities and expands FAR eligibility
The Reserve Bank of India has amended the framework for Foreign Portfolio Investor investments in government securities by removing three General Route restrictions and merging the general and long-term sub-categories into single limits for Central and State Government Securities, while expanding the Fully Accessible Route. For FY 2026-27, combined limits are INR 462,490 crore for Central and INR 153,043 crore for State Government Securities for April–September, rising to INR 477,006 crore and INR 164,242 crore for October–March. The Fully Accessible Route now covers all new 15-, 30- and 40-year issuances, all new Sovereign Green Bond issuances across specified tenors, and three existing long-dated securities, with changes effective immediately via an updated Master Direction.