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RBI Keeps FPI Investment Limits Unchanged for Government and Corporate Bonds in FY26.

Banking & Finance | Dated: 05 Apr 2025

In April 2025, the Reserve Bank of India (RBI) recently announced that the Foreign Portfolio Investors (FPI) investment limits in Government Securities (G-Secs), State Development Loans (SDLs), and corporate bonds will remain unchanged for the Financial Year 2025-26 (FY26). This decision reflects RBI’s strategy to maintain financial stability while encouraging steady foreign capital inflows.

🎯 Key Highlights:

  • - The continuation of existing FPI investment limits highlights RBI’s commitment to ensuring a balanced and secure investment climate for global investors.
  • - The Reserve Bank of India (RBI) has recently retained the Foreign Portfolio Investment (FPI) caps as follows — 6% for central government securities, 2% for state government securities, and 15% for corporate bonds, ensuring continuity in policy to support market stability and investor confidence.

💡 Other Important Facts:

  • (i) The general investment limit for Government Securities (G-Secs) has been recently set at Rs 2.79 trillion (USD 32.71 billion) for the period April to September 2025, and Rs 2.89 trillion for October 2025 to March 2026.
  • (ii) For corporate bonds, the investment ceiling stands at Rs 8.22 trillion for April to September 2025, and Rs 8.80 trillion for October 2025 to March 2026.
  • (iii) As of April 2025, Foreign Portfolio Investors (FPIs) have utilized only 22.3% of the G-Sec limit and 15.7% of the corporate bond limit, reflecting significant untapped potential for foreign capital inflows into Indian debt markets.

📚 Test Your Knowledge:

As per the recent announcement by RBI, what is the FPI investment limit for central government securities in FY26?

Correct Answer: 6%

🚀 Quick Recap: