Home › Circulars › RBI/2020-21/116

FPI Investment Limits for FY 2021-22: Corporate Bonds Unchanged

Current · Source: Reserve Bank of India · RBI/2020-21/116 · issued 31 Mar 2021 · ~2 min read
Quick answerRBI kept FPI investment limit in corporate bonds at 15% of outstanding stock for FY 2021-22. Revised limits are ₹5,74,263 crore for H1 and ₹6,07,039 crore for H2. G-sec and SDL limits remain unchanged until further notice.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Indore checks the new RBI circular and updates her bank's system to show that foreign investors can now invest up to ₹6,07,039 crore in corporate bonds for the second half of the year. She tells her team that this means more foreign money may come into the bond market, which could help keep loan rates stable for their gold-loan customers.

What changed

The circular confirms that the FPI investment limit in corporate bonds remains at 15% of outstanding stock for FY 2021-22. The revised limits are set at ₹5,74,263 crore for April-September 2021 and ₹6,07,039 crore for October 2021-March 2022. Limits for G-sec and SDL investments will be announced separately, with current limits continuing in the interim.

What it means for you

Banks and AD Category-I entities can expect stable FPI flows into corporate bonds, as the limit structure is unchanged. The gradual increase in corporate bond limits (from ₹5,41,488 crore to ₹6,07,039 crore by H2) reflects RBI's calibrated approach to foreign debt inflows. For lenders, this means continued foreign participation in corporate debt markets, aiding liquidity and pricing.

What you must do

Who it affects

Authorised Dealer Category-I banks, Foreign Portfolio Investors, Corporate bond issuers and market participants, Treasury and compliance teams at banks

❓ Common questions

What is the FPI investment limit for corporate bonds for FY 2021-22?

The limit remains at 15% of outstanding stock of securities. The revised numerical limits are ₹5,74,263 crore for April-September 2021 and ₹6,07,039 crore for October 2021-March 2022.

Are there any changes to G-sec and SDL limits?

No, the circular states that revised limits for G-sec and SDL will be advised separately. Current limits (G-sec General ₹2,34,531 crore, G-sec Long Term ₹1,03,531 crore, SDL General ₹67,630 crore, SDL Long Term ₹7,100 crore) continue until further notice.

Which banks are primarily responsible for implementing this circular?

Authorised Dealer Category-I (AD Category-I) banks are directed to bring the contents to the notice of their constituents and customers.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 273 kb ) Investment by Foreign Portfolio Investors (FPI): Investment limits RBI/2020-21/116 A.P. (DIR Series) Circular No. 14 March 31, 2021 To, All Authorized Persons Madam / Sir Investment by Foreign Portfolio Investors (FPI): Investment limits Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA.396/2019-RB dated October 17, 2019 , as amended from time to time and the relevant Directions issued thereunder. A reference is also invited to A.P. (DIR Series) Circular No. 30 dated April 15, 2020 on the captioned subject. 2. Investment Limits for FY 2021-22 a. The limits for FPI investment in Corporate bonds shall remain unchanged at 15% of outstanding stock of securities for FY 2021-22. Accordingly, the revised limits for FPI investment in corporate bonds, after rounding off, shall be as under ( Table - 1 ) Table - 1: Limits for FPI investment in Corporate bonds for FY 2021-22 (₹ Crore) Current FPI limit 5,41,488 Revised limit for HY Apr 2021-Sep 2021 5,74,263 Revised limit for HY Oct 2021-Mar 2022 6,07,039 b. The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2021-22 will be advised separately. Till such announcement, the current limits (as in Table - 2 ), shall continue to be applicable. Table - 2: Limits for FPI investments in G-Sec and SDL (₹ Crore) G-Sec General G-Sec Long Term SDL General SDL Long Term FPI investment limits 2,34,531 1,03,531 67,630 7,100 3. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 4. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law. Yours faithfully (Dimple Bhandia) Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/116 · issued 31 Mar 2021. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems with the revised FPI corporate bond limits for H1 and H2 of FY 2021-22.
📜 Compliance
  • Inform clients and constituents about the unchanged 15% limit and the new numerical caps.
  • Monitor RBI announcements for G-sec and SDL limit revisions, as current limits remain applicable.
  • Ensure compliance with FEMA regulations and the Debt Instruments Regulations, 2019.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (Authorised Dealer Category-I banks, Foreign Portfolio Investors, Corporate bond issuers and market participants, Treasury and compliance teams at banks), your first concrete step on “FPI Investment Limits for FY 2021-22: Corporate Bonds Unchanged” is: “Update internal systems with the revised FPI corporate bond limits for H1 and H2 of FY 2021-22.” (RBI issued this 31 Mar 2021).

  1. Circular: RBI/2020-21/116 -- FPI Investment Limits for FY 2021-22: Corporate Bonds Unchanged
  2. Issued: 31 Mar 2021
  3. Action required: Update internal systems with the revised FPI corporate bond limits for H1 and H2 of FY 2021-22.
  4. Action required: Inform clients and constituents about the unchanged 15% limit and the new numerical caps.
  5. Action required: Monitor RBI announcements for G-sec and SDL limit revisions, as current limits remain applicable.
  6. Action required: Ensure compliance with FEMA regulations and the Debt Instruments Regulations, 2019.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12049&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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