Home › Circulars › RBI/2024-25/27

FPI Debt Investment Limits for FY 2024-25 Unchanged

Current · Source: Reserve Bank of India · RBI/2024-25/27 · issued 26 Apr 2024 · ~1 min read
Quick answerRBI has kept FPI investment limits in government securities, state government securities, and corporate bonds unchanged at 6%, 2%, and 15% of outstanding stock for FY 2024-25. Incremental g-sec limit allocation remains 50:50 between General and Long-term sub-categories.
The rule, in the simplest words
How it plays out — a real example

A debt investment officer at a bank in Mumbai can expect continued FPI participation in Indian debt markets with stable limits, supporting liquidity. This predictability will help the officer plan bond market strategies for the bank's clients. The officer will also need to monitor FPI investment flows against the new limits for g-secs, SGSs, and corporate bonds.

What changed

The limits for FPI investment in government securities (6%), state government securities (2%), and corporate bonds (15%) remain unchanged for FY 2024-25. The allocation of incremental g-sec limit increases between General and Long-term sub-categories stays at 50:50. The entire increase in SGS limits has been added to the General sub-category.

What it means for you

Banks can expect continued FPI participation in Indian debt markets with stable limits, supporting liquidity. The unchanged limits provide predictability for bond market planning. The additional SGS limit allocation to General sub-category may increase demand for state government securities.

What you must do

Who it affects

AD Category-I banks, Foreign Portfolio Investors, Treasury departments of banks, Debt market participants

❓ Common questions

What is the Credit Default Swap limit for FPIs?

The aggregate notional amount of CDS sold by FPIs is set at 5% of the outstanding stock of corporate bonds. For 2024-25, an additional limit of ₹2,54,500 crore is set out.

📜 Read the original circular — full text as issued by RBI
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(DIR Series) Circular No. 03 April 26, 2024 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. 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. 23 dated February 10, 2022 ; A.P. (DIR Series) Circular No. 01 dated April 19, 2022 ; Circular no. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022 ; Circular no. FMRD.FMID.No. 07/14.01.006/2022-23 dated January 23, 2023 ; and Circular no. FMRD.FMID.No. 04/14.01.006/2023-24 dated November 08, 2023 ; 3. Investment Limits for the financial year 2024-25: The limits for FPI investment in government securities (g-secs), state government securities (SGSs) and corporate bonds shall remain unchanged at 6 per cent, 2 per cent and 15 per cent respectively, of the outstanding stocks of securities for 2024-25. 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 2024-25. The entire increase in limits for SGSs (in absolute terms) has been added to the ‘General’ sub-category of SGSs. 4. The revised limits (in absolute terms) for the different categories, are in Table 1 : Table 1: Investment limits for 2024-25 all figures in ₹ Crore G-Sec General G-Sec Long Term SGS General SGS Long Term Corporate Bonds Total Debt Current FPI limits 2,67,890 1,36,890 92,828 7,100 6,67,871 11,72,578 Revised limit for the HY Apr 2024-Sept 2024 2,68,437 1,37,437 1,05,290 7,100 7,15,687 12,33,951 Revised limit for the HY Oct 2024-Mar 2025 2,68,984 1,37,984 1,17,752 7,100 7,63,503 12,95,322 5. In terms of A.P. (DIR Series) Circular No. 23 dated February 10, 2022 , the aggregate limit of the notional amount of Credit Default Swaps sold by FPIs shall be 5 per cent of the outstanding stock of corporate bonds. Accordingly, an additional limit of ₹2,54,500 crore is set out for 2024-25. 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) 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/2024-25/27 · issued 26 Apr 2024. 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 with the revised absolute FPI investment limits for each half-year as per Table 1.
📜 Compliance
  • Inform AD Category-I bank customers about the unchanged percentage limits and revised absolute figures.
  • Monitor FPI investment flows against the new limits for g-secs, SGSs, and corporate bonds.
  • Note the additional Credit Default Swap limit of ₹2,54,500 crore for FPIs for 2024-25.
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 (AD Category-I banks, Foreign Portfolio Investors, Treasury departments of banks, Debt market participants), your first concrete step on “FPI Debt Investment Limits for FY 2024-25 Unchanged” is: “Update your systems with the revised absolute FPI investment limits for each half-year as per Table 1.” (RBI issued this 26 Apr 2024).

  1. Circular: RBI/2024-25/27 -- FPI Debt Investment Limits for FY 2024-25 Unchanged
  2. Issued: 26 Apr 2024
  3. Action required: Update your systems with the revised absolute FPI investment limits for each half-year as per Table 1.
  4. Action required: Inform AD Category-I bank customers about the unchanged percentage limits and revised absolute figures.
  5. Action required: Monitor FPI investment flows against the new limits for g-secs, SGSs, and corporate bonds.
  6. Action required: Note the additional Credit Default Swap limit of ₹2,54,500 crore for FPIs for 2024-25.
  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=12675&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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