Sovereign Green Bonds added to FAR for non-resident investors
Current · Source: Reserve Bank of India · RBI/2023-24/81 · issued 08 Nov 2023 · ~2 min read
Quick answerRBI has included all Sovereign Green Bonds issued in FY 2023-24 under the Fully Accessible Route (FAR), allowing non-resident investors to invest without restrictions, alongside domestic investors. This expands the eligible securities basket for foreign portfolio investment in government securities.
The rule, in the simplest words
Non-resident investors (people or companies from other countries) can now buy all Sovereign Green Bonds (special government loans for eco-friendly projects) issued in FY 2023-24 without any limits.
These bonds are added to the Fully Accessible Route (FAR) (a special path that lets foreign investors buy Indian government loans easily).
Domestic investors (people and banks in India) can also buy these bonds as before.
This rule started on November 8, 2023, and works right away.
How it plays out — a real example
A treasury officer in Indore, Priya, updates her bank's system to list all Sovereign Green Bonds from FY 2023-24 as FAR-eligible. She then calls a non-resident investor client, Mr. Sharma in Dubai, to tell him he can now invest in these green bonds without any restrictions, helping the bank attract more foreign funds for eco-friendly projects.
What changed
RBI has designated all Sovereign Green Bonds issued by the Government in FY 2023-24 as 'specified securities' under the Fully Accessible Route (FAR). Previously, FAR covered certain specified categories of Central Government securities; now Sovereign Green Bonds are explicitly added. This change is effective immediately from November 8, 2023.
What it means for you
For banks and market participants, this broadens the pool of government securities available for non-resident investment without any limits, potentially increasing demand and liquidity for Sovereign Green Bonds. It aligns with India's green finance goals and may improve pricing for these instruments. Lenders should update their FAR-eligible securities list and inform foreign investor clients.
What you must do
Update your internal systems to include all Sovereign Green Bonds issued in FY 2023-24 as FAR-eligible securities.
Communicate this change to your non-resident investor clients and treasury teams handling government securities.
Review your current holdings of Sovereign Green Bonds to ensure compliance with FAR reporting requirements.
Monitor market demand and pricing impacts from increased non-resident participation in these bonds.
Who it affects
All participants in the Government Securities market, Non-resident investors in Indian government securities, Banks and primary dealers dealing in Sovereign Green Bonds, Treasury departments of financial institutions
❓ 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, such as investment limits or lock-in periods. These securities are also available to domestic investors.
Which Sovereign Green Bonds are now included under FAR?
All Sovereign Green Bonds issued by the Government in the fiscal year 2023-24 are now designated as 'specified securities' under FAR. This includes bonds issued as per the calendar notified in September 2023.
When does this change take effect?
The directions are applicable with immediate effect from November 8, 2023, the date of the circular.
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/81
FMRD.FMID.No. 04/14.01.006/2023-24
November 08, 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 Dated Securities for October 2023 - March 2024’ dated September 26, 2023 , issued by the Reserve Bank, notifying, inter alia, the issuance calendar for Sovereign Green Bonds for the fiscal year 2023-24. 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 are 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 , circular no. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022 and circular no. FMRD.FMID.No. 07/14.01.006/2022-23 dated January 23, 2023 .
3. It has now been decided to also designate all Sovereign Green Bonds issued by the Government in the fiscal year 2023-24 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/2023-24/81 · issued 08 Nov 2023. The plain-English explanation above is BankPulse’s own independent summary.
Update your internal systems to include all Sovereign Green Bonds issued in FY 2023-24 as FAR-eligible securities.
📜 Compliance
Communicate this change to your non-resident investor clients and treasury teams handling government securities.
Review your current holdings of Sovereign Green Bonds to ensure compliance with FAR reporting requirements.
Monitor market demand and pricing impacts from increased non-resident participation in these 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 (All participants in the Government Securities market, Non-resident investors in Indian government securities, Banks and primary dealers dealing in Sovereign Green Bonds, Treasury departments of financial institutions), your first concrete step on “Sovereign Green Bonds added to FAR for non-resident investors” is: “Update your internal systems to include all Sovereign Green Bonds issued in FY 2023-24 as FAR-eligible securities.” (RBI issued this 08 Nov 2023).
Circular: RBI/2023-24/81 -- Sovereign Green Bonds added to FAR for non-resident investors
Issued: 08 Nov 2023
Action required: Update your internal systems to include all Sovereign Green Bonds issued in FY 2023-24 as FAR-eligible securities.
Action required: Communicate this change to your non-resident investor clients and treasury teams handling government securities.
Action required: Review your current holdings of Sovereign Green Bonds to ensure compliance with FAR reporting requirements.
Action required: Monitor market demand and pricing impacts from increased non-resident participation in these bonds.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=12563&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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