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Sovereign Green Bonds Now Open to Non-Residents via FAR

Current · Source: Reserve Bank of India · RBI/2022-23/169 · issued 23 Jan 2023 · ~1 min read
Quick answerRBI has designated all Sovereign Green Bonds issued in FY 2022-23 as 'specified securities' under the Fully Accessible Route, allowing non-resident investors unrestricted access alongside domestic investors, effective immediately.
The rule, in the simplest words
How it plays out — a real example

As a forex & trade-finance officer in Indore, Rohan helps a foreign investor, Mr. Lee, buy a Sovereign Green Bond. With the new RBI rule, Rohan can now easily facilitate Mr. Lee's investment, knowing that these bonds are fully accessible to non-resident investors. Rohan's work becomes easier, and he can provide better services to his clients.

What changed

Previously, only certain categories of Central Government securities were eligible under the Fully Accessible Route (FAR) for non-resident investors. Now, all Sovereign Green Bonds issued in FY 2022-23 have been added to this list, making them fully accessible without restrictions.

What it means for you

This move expands the pool of green investment options for foreign investors, potentially increasing demand for Sovereign Green Bonds. Banks and market participants can expect improved liquidity and pricing in this segment, as non-resident participation broadens the investor base.

What you must do

Who it affects

All participants in the Government Securities market, Non-resident investors in Indian bonds, Treasury departments of banks and primary dealers, Compliance and operations teams handling FAR transactions

❓ Common questions

What is the Fully Accessible Route (FAR)?

FAR is a route introduced by RBI in March 2020 that allows non-resident investors to invest in specified Central Government securities without any restrictions, alongside domestic investors.

Which bonds are now included under FAR?

All Sovereign Green Bonds issued by the Government of India in the fiscal year 2022-23 have been designated as 'specified securities' under FAR.

When does this circular take effect?

The directions are applicable with immediate effect from January 23, 2023.

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/169 FMRD.FMID.No.07/14.01.006/2022-23 January 23, 2023 To All participants in Government Securities market Madam/Sir, ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds A reference is invited to the Press Release on Issuance Calendar for Marketable Sovereign Green Bonds: FY 2022-23 dated January 06, 2023 , issued by the Reserve Bank, notifying the issuance calendar for Sovereign Green Bonds for the fiscal year 2022-23. Attention is also invited to the Fully Accessible Route (FAR) introduced by the Reserve Bank, vide A.P. (DIR Series) Circular No. 25 dated March 30, 2020 , wherein certain specified categories of Central Government securities were opened fully for non-resident investors without any restrictions, apart from being available to domestic investors as well. 2. The Government Securities that were eligible for investment under the FAR (‘specified securities’) were notified by the Bank, vide circular no. FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020 and circular no. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022 . 3. It has now been decided to also designate all Sovereign Green Bonds issued by the Government in the fiscal year 2022-23 as ‘specified securities’ under the FAR. 4. The Directions contained in this circular have been issued under Section 45W of Chapter IIID of the Reserve Bank of India Act, 1934 and are without prejudice to permissions/ approvals, if any, required under any other law. 5. These Directions shall be applicable with immediate effect. Yours faithfully, (Dimple Bhandia) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/169 · issued 23 Jan 2023. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update your systems and documentation to reflect Sovereign Green Bonds as FAR-eligible securities.
📜 Compliance
  • Inform your treasury and compliance teams about the immediate applicability of this circular.
  • Review your bond portfolio for opportunities to facilitate non-resident investments in these green bonds.
  • Monitor market reactions and adjust pricing strategies to accommodate increased foreign demand.
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 (All participants in the Government Securities market, Non-resident investors in Indian bonds, Treasury departments of banks and primary dealers, Compliance and operations teams handling FAR transactions), your first concrete step on “Sovereign Green Bonds Now Open to Non-Residents via FAR” is: “Update your systems and documentation to reflect Sovereign Green Bonds as FAR-eligible securities.” (RBI issued this 23 Jan 2023).

  1. Circular: RBI/2022-23/169 -- Sovereign Green Bonds Now Open to Non-Residents via FAR
  2. Issued: 23 Jan 2023
  3. Action required: Update your systems and documentation to reflect Sovereign Green Bonds as FAR-eligible securities.
  4. Action required: Inform your treasury and compliance teams about the immediate applicability of this circular.
  5. Action required: Review your bond portfolio for opportunities to facilitate non-resident investments in these green bonds.
  6. Action required: Monitor market reactions and adjust pricing strategies to accommodate increased foreign demand.
  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.

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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=12444&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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