RBI Keeps FPI Investment Caps Unchanged for FY2025-26

On April 3, 2025, the Reserve Bank of India (RBI) announced that it will retain the existing Foreign Portfolio Investor (FPI) investment limits in government and corporate bonds for the financial year 2025-26. These unchanged caps include 6% for Central Government Securities (G-Secs), 2% for State Development Loans (SDLs), and 15% for corporate bonds. The move reflects a stable investment environment and provides predictability for foreign investors in India’s debt markets.

Key Highlights

Investment Caps Maintained by RBI (FY26)

  • Government Securities (G-Secs): 6% of outstanding stock.
  • State Development Loans (SDLs): 2% of outstanding stock.
  • Corporate Bonds: 15% of outstanding stock.

Time Period & Investment Limits

  • April – September 2025:
  • G-Secs: ₹2.79 trillion (~$32.71 billion)
  • Corporate Bonds: ₹8.22 trillion

October 2025 – March 2026

  • G-Secs: ₹2.89 trillion
  • Corporate Bonds: ₹8.80 trillion

Utilisation by FPIs (as of April 2025)

  • Government Bonds: 22.3% of the limit used
  • Corporate Bonds: 15.7% of the limit used

Implication

  • The move ensures continuity and market stability.
  • It allows foreign investors to plan their bond investments better with clear limits.
  • Signals that India is not making major changes in its debt access policies for foreign entities this fiscal.

Why It Matters

  • These limits guide capital inflow, influence bond yields, and are part of India’s overall foreign investment policy.
  • Stable limits reduce market volatility and send a confidence signal to global investors.
Summary/Static Details
Why in the news? RBI Keeps FPI Investment Caps Unchanged for FY2025-26
Govt. Securities (G-Secs) Investment cap: 6% of outstanding stock
SDLs (State Govt. Securities) Investment cap: 2% of outstanding stock
Corporate Bonds Investment cap: 15% of outstanding stock
G-Secs Limit (Apr–Sep 2025) ₹2.79 trillion (~$32.71 billion)
G-Secs Limit (Oct–Mar 2026) ₹2.89 trillion
Corporate Bonds Limit (Apr–Sep 2025) ₹8.22 trillion
Corporate Bonds Limit (Oct–Mar 2026) ₹8.80 trillion
Utilisation (as of Apr 2025) G-Secs: 22.3%, Corporate Bonds: 15.7%
Policy Status Investment limits kept unchanged for FY2025–26
Shivam

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