RBI keeps FPI debt investment limits unchanged for FY26‑27

RBI keeps FPI debt investment limits unchanged for FY27, retaining caps on G-Secs, state loans and corporate bonds while ensuring stable foreign participation.

Written by FE Bureau

April 6, 2026 21:41 IST

With limits steady at 6%, 2% and 15%, RBI signals policy continuity for FPI debt flows, alongside revised absolute investment ceilings and CDS caps.

The Reserve Bank of India (RBI) on Monday has kept the percentage limits for foreign portfolio investor (FPI) investment in government securities (G-Sec), state government securities (SGS) and corporate bonds unchanged for the financial year 2026‑27.

The FPI limits in G-Sec, SGS and corporate bonds will continue to remain at 6%, 2% and 15%, respectively. The RBI has also retained the 50:50 allocation of incremental G‑Sec limits between the general and long‑term sub‑categories, while the entire increase in state government security limits has been assigned to the general sub‑category.

Investments in sepcified securities

Investments in specified securities will continue to fall under the Fully Accessible Route (FAR), ensuring unrestricted access for eligible FPIs. Effective April 1, all existing and future investments under the voluntary retention route will be governed by the same limits applicable to the general route, marking a harmonisation of investment frameworks.

Alongside the unchanged percentage caps, the RBI has released revised absolute limits FY26‑27. For April–September 2026, the total permissible FPI debt investment stands at Rs 15,51,646 crore, rising to Rs 16,32,640 crore for October 2026–March 2027. The aggregate limit of the notional amount credit default swaps sold by FPIs shall be 5% of the outstanding stock of corporate bond, translating into an additional limit of Rs 3,30,464 crore for FY26-27.

This article was first uploaded on April six, twenty twenty-six, at forty-one minutes past nine in the night.