Last Updated on June 6, 2026 3:08 pm by BIZNAMA NEWS

Our Correspondent

The Reserve Bank of India (RBI) has announced key changes to the regulatory framework governing investments by Foreign Portfolio Investors (FPIs) in Government Securities, aimed at improving ease of investment and simplifying compliance requirements. Under the revised framework, FPIs investing through the General Route will no longer be required to comply with short-term investment limits, security-wise limits, and concentration limits. The move is expected to provide greater flexibility to foreign investors. The RBI has also merged the earlier sub-categories of investment limits, ‘general’ and ‘long-term’, into a single consolidated limit for both Central Government Securities and State Government Securities (SGSs).

For FY 2026-27, the revised limits have been set at 4,62,490 crore rupees for the first half and 4,77,006 crore rupees for the second half for Central Government Securities, while the corresponding limits for SGSs are 1,53,043 crore rupees and 1,64,242 crore rupees. The revised directions have come into effect immediately, according to the RBI circular.