RBI Retains FPI Investment Limits for Government Securities
The Reserve Bank of India has announced that foreign portfolio investment limits for government securities will remain unchanged at 6% for the fiscal year 2026-27. The division of incremental G-Sec limits remains equal between General and Long-term sub-categories. Additional limits for SGSs and corporate bonds are also detailed.
- Country:
- India
The Reserve Bank of India (RBI) confirmed on Monday that the investment limits for foreign portfolio investors (FPIs) in government securities would stay at 6% of the outstanding stock for 2026-27, retaining its previous cap. This decision ensures stability in the investment landscape despite rising market dynamics.
Additionally, the allocation of the incremental G-Sec limit has been maintained at a balanced 50:50 ratio between the General and Long-term sub-categories. This approach aims to distribute investment capacity evenly across different securities classes for the upcoming fiscal year.
Notably, the RBI has set a fresh additional investment limit of ₹3,30,464 crore for the fiscal period, with an exclusive increase in State Government Securities (SGSs) under the General sub-category. Investments under the Voluntary Retention Route will conform to the established General Route limits from April 2026 onward.
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