RBI Maintains Steady Course on FPI Investment Limits for 2025-26

The Reserve Bank of India (RBI) has announced that the Foreign Portfolio Investor (FPI) investment limits in government securities, state government securities, and corporate bonds will remain unchanged for 2025-26. The investments under Fully Accessible Route and the credit default swaps sold by FPIs will adhere to existing limits.

The Reserve Bank of India (RBI) announced on Thursday that it will maintain the current investment limits for Foreign Portfolio Investors (FPIs) in government securities, state government securities, and corporate bonds for the fiscal year 2025-26.

The investment cap will stay at 6 percent for government securities, 2 percent for state government securities, and 15 percent of the outstanding stocks of securities for corporate bonds, as outlined in an RBI circular. These investments will continue to be made under the Fully Accessible Route (FAR).

Moreover, the allocation for the incremental growth in government securities will remain split equally between 'General' and 'Long-term' sub-categories. Additionally, a new investment ceiling of Rs 2,93,612 crore has been set. The notional amount of credit default swaps sold by FPIs will also continue to be capped at 5 percent of the outstanding stock of corporate bonds.

(With inputs from agencies.)