The Reserve Bank of India has notified that for FY 2026–27, the limits for FPI investment in debt under the General Route remain unchanged at 6% for Government Securities, 2% for State Government Securities, and 15% for corporate bonds, while incremental increases will continue to be allocated (50:50 between General and Long-Term for G-Secs and fully to General for SGSs), with revised total debt limits rising to ₹16,32,640 crore by March 2027; investments in specified securities will continue under the Fully Accessible Route, and from April 1, 2026, all Voluntary Retention Route investments will align with General Route limits, while the aggregate limit for Credit Default Swaps sold by FPIs remains at 5% of outstanding corporate bonds with an additional limit of ₹3,30,464 crore, and the earlier FY 2025–26 circular stands withdrawn.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13366&Mode=0
About the Author
