The Reserve Bank of India (RBI) on June 05, 2026, issued a notification regarding Investments by Foreign Portfolio Investors in Government Securities – Amendments to the regulatory framework.
The following has been stated:-
•The Reserve Bank of India has simplified the regulatory framework for Foreign Portfolio Investors (FPIs) investing in Government Securities by removing the short-term investment limit, security-wise limit, and concentration limit under the General Route.
•It has also merged the separate ‘general’ and ‘long-term’ investment categories into a single limit for Central and State Government Securities for FY 2026–27.
•Additional government securities, including new issuances in 15-year, 30-year, and 40-year tenors and Sovereign Green Bonds, have been designated as eligible securities under the Fully Accessible Route (FAR).
•Certain existing government securities have also been included under FAR. The amendments aim to provide greater ease of investment, improve market access for foreign investors, and streamline compliance requirements.
•The revised directions came into effect immediately and have been incorporated into the updated RBI Master Direction.
[Notification No.: RBI/2026-27/97A.P. (DIR Series) Circular No. 11]
