RBI maintains FPI investment caps in govt securities, corp bonds for FY26

Apr 3, 2025

The Reserve Bank of India (RBI) maintained the existing caps of 6 per cent for government securities, 2 per cent for state government securities and 15 per cent for corporate bonds

India's central bank on Thursday kept the investment limits unchanged for foreign portfolio investors (FPIs) in government and corporate bonds for the fiscal year 2025-26.

The Reserve Bank of India (RBI) maintained the existing caps of 6 per cent for government securities, 2 per cent for state government securities and 15 per cent for corporate bonds for the current year starting April 1, the central bank said in a press release.

The general limit for foreign investment in government bonds would continue to be Rs 2.79 trillion ($32.71 billion) for April-September and Rs 2.89 trillion for October-March, the central bank said.

Foreign investments in corporate bonds would be permitted up to Rs 8.22 trillion for April-September and Rs 8.80 trillion for October-March, RBI added.

Currently, foreign investors have utilised 22.3 per cent of their investment limit in government bonds and 15.7 per cent limit in corporate bonds.

[Reuters]