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.

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.

(With inputs from agencies.)