Home › Circulars › RBI/2022-23/28

FPI Debt Investment Limits for FY 2022-23 Unchanged

Current · Source: Reserve Bank of India · RBI/2022-23/28 · issued 19 Apr 2022 · ~2 min read
Quick answerRBI has kept FPI investment limits for G-secs, SDLs, and corporate bonds unchanged at 6%, 2%, and 15% of outstanding stocks for FY 2022-23. The 50:50 split between General and Long-term G-sec sub-categories continues, and the CDS sale limit remains at 5% of outstanding corporate bonds.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Indore, Priya, checks the new circular and sees that FPI limits for government bonds are unchanged at 6%. She updates her system so that when an FPI client wants to buy more G-secs, the system will still allow up to 6% of the total outstanding bonds, split 50:50 between general and long-term. This keeps her daily work smooth without any sudden rule changes.

What changed

The circular confirms that FPI investment limits for government securities, state development loans, and corporate bonds remain at the same percentages of outstanding stocks as before. The allocation of incremental G-sec limit changes between General and Long-term sub-categories stays at 50:50, and the entire SDL limit increase goes to the General sub-category. The aggregate limit for CDS sold by FPIs is set at 5% of outstanding corporate bonds, with an additional limit of ₹2,22,623 crore for FY 2022-23.

What it means for you

Banks and authorized dealers can expect continued FPI participation in Indian debt markets without any tightening of overall limits, which supports stable capital inflows. The unchanged limits and sub-category allocations provide predictability for banks managing FPI investments and related compliance. The CDS limit increase offers FPIs more room to hedge credit risk, potentially boosting corporate bond market liquidity.

What you must do

Who it affects

Authorized Dealer Category-I banks, Foreign Portfolio Investors, Custodian banks handling FPI debt investments, Market participants in government securities and corporate bonds

❓ Common questions

What are the FPI investment limits for FY 2022-23?

The limits remain unchanged: 6% of outstanding G-secs, 2% of outstanding SDLs, and 15% of outstanding corporate bonds. The absolute limits for each half-year are provided in Table-1 of the circular.

How is the G-sec limit split between General and Long-term sub-categories?

The incremental changes in the G-sec limit are allocated equally at 50:50 between the General and Long-term sub-categories for FY 2022-23.

What is the CDS sale limit for FPIs?

The aggregate notional amount of CDS sold by FPIs is capped at 5% of the outstanding stock of corporate bonds, with an additional limit of ₹2,22,623 crore set for FY 2022-23.

📜 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 ( 374 kb ) Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs) RBI/2022-23/28 A.P. (DIR Series) Circular No. 01 (revised number) April 19, 2022 To, All Authorized Persons Madam / Sir Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs) 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. 2. A reference is also invited to the following directions issued by the Reserve Bank: A.P. (DIR Series) Circular No. 25 dated March 30, 2020 ; Circular No. FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020 ; A.P. (DIR Series) Circular No. 05 dated May 31, 2021 ; and A.P. (DIR Series) Circular No. 23 dated February 10, 2022 . 3. Investment Limits for the financial year (FY) 2022-23: The limits for FPI investment in Government securities (G-secs), State Development Loans (SDLs) and corporate bonds shall remain unchanged at 6%, 2% and 15% respectively, of outstanding stocks of securities for FY 2022-23. As hitherto, all investments by eligible investors in the ‘specified securities’ shall be reckoned under the Fully Accessible Route (FAR) in terms of A.P. (DIR Series) Circular No. 25 dated March 30, 2020 . The allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for FY 2022-23. The entire increase in limits for SDLs (in absolute terms) has been added to the ‘General’ sub-category of SDLs. 4. The revised limits (in absolute terms) for the different categories, are in Table-1 : Table - 1: Investment limits for FY 2022-23 all figures in ₹ Crore G-Sec General G-Sec Long Term SDL General SDL Long Term Corporate Bonds Total Debt Current FPI limits 2,53,298 1,22,298 85,902 7,100 6,07,039 10,75,637 Revised limit for the HY Apr 2022-Sept 2022 2,60,594 1,29,594 89,365 7,100 6,37,455 11,24,107 Revised limit for the HY Oct 2022-Mar 2023 2,67,890 1,36,890 92,828 7,100 6,67,871 11,72,578 5. In terms of A.P. (DIR Series) Circular No. 23 dated February 10, 2022 , the aggregate limit of the notional amount of CDS sold by FPIs shall be 5% of the outstanding stock of corporate bonds. Accordingly, an additional limit of ₹2,22,623 crore is set out for FY 2022-23. 6. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 7. 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/2022-23/28 · issued 19 Apr 2022. 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 investment limits for each half-year as per Table-1.
📜 Compliance
  • Inform FPI clients and constituents about the unchanged percentage limits and sub-category allocations.
  • Monitor FPI investments to ensure compliance with the 5% CDS notional limit on outstanding corporate bonds.
  • Review and align reporting processes with the new absolute limit figures for G-secs, SDLs, and corporate bonds.
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 (Authorized Dealer Category-I banks, Foreign Portfolio Investors, Custodian banks handling FPI debt investments, Market participants in government securities and corporate bonds), your first concrete step on “FPI Debt Investment Limits for FY 2022-23 Unchanged” is: “Update internal systems with the revised FPI investment limits for each half-year as per Table-1.” (RBI issued this 19 Apr 2022).

  1. Circular: RBI/2022-23/28 -- FPI Debt Investment Limits for FY 2022-23 Unchanged
  2. Issued: 19 Apr 2022
  3. Action required: Update internal systems with the revised FPI investment limits for each half-year as per Table-1.
  4. Action required: Inform FPI clients and constituents about the unchanged percentage limits and sub-category allocations.
  5. Action required: Monitor FPI investments to ensure compliance with the 5% CDS notional limit on outstanding corporate bonds.
  6. Action required: Review and align reporting processes with the new absolute limit figures for G-secs, SDLs, and corporate bonds.
  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=12295&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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