The Reserve Bank of India (RBI) on June 05, 2026, issued a notification regarding updates in the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025.
The following has been stated:-
•The Reserve Bank of India has issued the Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025, consolidating all regulations governing non-resident investments in Indian debt instruments.
•The Directions prescribe investment routes such as the General Route, Voluntary Retention Route (VRR), Fully Accessible Route (FAR), Sovereign Green Bond investments, and the Special Rupee Vostro Account (SRVA) Route.
•They specify eligible investors, permissible debt instruments, investment limits, maturity requirements, and compliance obligations for Foreign Portfolio Investors (FPIs), NRIs, and other non-residents.
•The updated Direction incorporates amendments up to June 05, 2026, including the removal of certain short-term investment, concentration, and security-wise limits.
•It also expands FAR eligibility to additional government securities and clarifies investment norms under the SRVA and VRR frameworks. The Direction aims to streamline foreign investment in Indian debt markets while ensuring regulatory oversight and market stability.
[Notification No.: RBI/2024-25/126 FMRD.FMD.No.10/14.01.006/2024-25]
