RBI Keeps FPI Investment Limits Unchanged for Government and Corporate Bonds in FY26.

Banking & Finance

In April 2025, the Reserve Bank of India (RBI) recently announced that the Foreign Portfolio Investors (FPI) investment limits in Government Securities (G-Secs), State Development Loans (SDLs), and corporate bonds will remain unchanged for the Financial Year 2025-26 (FY26). This decision reflects RBI’s strategy to maintain financial stability while encouraging steady foreign capital inflows.


      - The continuation of existing FPI investment limits highlights RBI’s commitment to ensuring a balanced and secure investment climate for global investors.

      - The Reserve Bank of India (RBI) has recently retained the Foreign Portfolio Investment (FPI) caps as follows — 6% for central government securities, 2% for state government securities, and 15% for corporate bonds, ensuring continuity in policy to support market stability and investor confidence.

     

Main Point :-   (i) The general investment limit for Government Securities (G-Secs) has been recently set at Rs 2.79 trillion (USD 32.71 billion) for the period April to September 2025, and Rs 2.89 trillion for October 2025 to March 2026.

      (ii) For corporate bonds, the investment ceiling stands at Rs 8.22 trillion for April to September 2025, and Rs 8.80 trillion for October 2025 to March 2026.

(iii) As of April 2025, Foreign Portfolio Investors (FPIs) have utilized only 22.3% of the G-Sec limit and 15.7% of the corporate bond limit, reflecting significant untapped potential for foreign capital inflows into Indian debt markets.

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