The Reserve Bank of India (RBI) has permitted persons resident outside India maintaining a Special Rupee Vostro Account (SRVA) for international trade settlement in Indian Rupees to invest their rupee surplus balances not only in Central Government Securities (including Treasury Bills) but also in non-convertible debentures/bonds and commercial papers issued by Indian companies. These investments will be counted under the corporate debt securities investment limit under the General Route, as specified in the updated Master Direction – Non-resident Investment in Debt Instruments, 2025.
The updated Master Direction also mandates that such investments adhere to limits applicable to FPIs under the General Route, except for minimum residual maturity and issue-wise limits. AD Category-I banks must facilitate separate demat accounts for SRVA holders, ensure compliance with applicable investment limits, and report these transactions to SEBI-registered depositories. These instructions, issued under Sections 10(4) and 11(1) of FEMA, 1999, take immediate effect and must be communicated to concerned constituents and customers.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12909&Mode=0
