RBI keeps FPI investment limit in government securities unchanged for FY27

The Reserve Bank of India (RBI) has said that the limit for foreign portfolio investors (FPIs) investing in government securities through the general route will remain unchanged at 6% of the outstanding stocks of securities for 2026-27.

Moreover, it said the allocation of incremental changes in the G-Sec limit (in absolute terms) over the two sub-categories -- General and Long-term -- has been retained at 50:50 for 2026-27.

It stated ‘The limits for FPI investment in Government Securities (G-Secs), State Government Securities (SGSs) and corporate bonds shall remain unchanged at 6%, 2 % and 15% respectively, of the outstanding stocks of securities for 2026-27 for the General Route’.

It noted that the overall limit of the notional amount of credit default swaps sold by FPIs will be 5% of the outstanding stock of corporate bonds.

As a result, an additional limit of ₹3,30,464 crore is set out for 2026-27. The entire increase in limits for SGSs (in absolute terms) has been added to the 'General' sub-category of SGSs. RBI said ‘As hitherto, all investments by eligible investors in the 'specified securities' shall be reckoned under the Fully Accessible Route (FAR).’ Effective April 01, 2026, all current and future investments under the Voluntary Retention Route will be subject to the investment limits stipulated for FPI investments under the General Route.