RBI tightens bulk deposit rules

...raises FII limit in G-Secs, corporate bonds by $5 billion

The Reserve Bank of India has hiked FII investment limits in government securities and corporate bonds by $5 billion each, taking the total cap in domestic debt to $75 billion.

Further liberalising the norms, the three-year lock-in period for foreign institutional investors (FIIs) purchasing government securities (G-Secs) for the first time has been done away with, the RBI said. The sub-limit of $10 billion for investment by FIIs and long-term investors in G-Secs stands enhanced by $5 billion, it said. The limit in corporate debt, other than infrastructure sector, stands enhanced from $20 billion to $25 billion, the RBI said.