Current · Source: Reserve Bank of India · RBI/2024-25/56 · issued 29 Jul 2024 · ~2 min read
Quick answerRBI has excluded new 14-year and 30-year government securities from the Fully Accessible Route for non-residents. Existing stocks remain tradable in secondary market. New issuances will fall under standard FPI investment limits.
The rule, in the simplest words
New 14‑year and 30‑year government bonds are no longer allowed for foreign investors under the Fully Accessible Route (FAR – a way with no limits).
Old 14‑year and 30‑year bonds that were already in the FAR list can still be bought or sold to foreign investors in the secondary market.
Any new long‑term bonds must follow the normal foreign‑investor limits and rules set in RBI circulars (like the April 2024 limit rules).
Banks must update their trading systems and tell foreign‑portfolio‑investor (FPI) clients that new long‑tenor bonds now need the standard limit approvals.
How it plays out — a real example
Rohit Mehta, senior treasury officer at State Bank of India in Mumbai, checks the daily bond issuance list. When he sees a new 30‑year government security, he notes that it cannot be sold to FPIs under FAR and instead processes it through the standard limit framework, warmly informing his FPI client, Global Asset Management, about the required steps.
What changed
RBI, in consultation with the government, decided to exclude all new issuances of 14-year and 30-year government securities from the Fully Accessible Route. Existing stocks of these tenors already classified as specified securities will continue to be available for non-resident investment in the secondary market.
What it means for you
Banks and market participants must note that fresh FPI inflows into long-dated G-Secs (14-year and 30-year) will now be subject to standard investment limits and conditions, not the unrestricted FAR. This could reduce foreign demand for new long-tenor paper, potentially impacting yields and pricing for these maturities. Existing holdings under FAR remain unaffected, providing continuity for current portfolios.
What you must do
Update your G-Sec trading and investment systems to reflect that new 14-year and 30-year issuances are no longer FAR-eligible.
Advise FPI clients that new long-tenor G-Sec investments must comply with standard limit frameworks (e.g., AP DIR Series Circulars).
Monitor secondary market liquidity for existing FAR-eligible 14-year and 30-year stocks, as they remain available for non-resident trading.
Review your bank's own investment and ALM strategies for long-dated G-Secs in light of potential demand shifts.
Who it affects
Primary Dealers, FPIs and non-resident investors, Treasury desks of banks, G-Sec market participants
❓ Common questions
Are existing 14-year and 30-year G-Secs under FAR still tradable?
Yes, existing stocks already classified as specified securities under FAR continue to be available for non-resident investment in the secondary market.
What limits apply to new 14-year and 30-year G-Sec investments by FPIs?
New issuances will be subject to the investment limits and conditions prescribed in AP DIR Series Circular No. 03 dated April 26, 2024, or Circular No. 22 dated February 10, 2022, as amended.
When does this change take effect?
The circular is applicable with immediate effect from July 29, 2024.
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/56
FMRD.FMID.No.03/14.01.006/2024-25
July 29, 2024
To
All participants in Government Securities market
Madam/Sir,
‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Exclusion of new issuances in 14-year and 30-year tenor securities
A reference is invited to the Fully Accessible Route 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 Fully Accessible Route (‘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 , circular no. FMRD.FMID.No. 07/14.01.006/2022-23 dated January 23, 2023 and FMRD.FMID.No. 04/14.01.006/2023-24 dated November 08, 2023 .
3. On a review and in consultation with the Government, it has been decided to exclude all new securities of 14-year and 30-year tenors from the Fully Accessible Route. Consequently, future issuances of Government Securities in these tenors shall not be available for investment under the Fully Accessible Route. Existing stocks of Government Securities in 14-year and 30-year tenors already included as ‘specified securities’ under the Fully Accessible Route shall, however, continue to be available under the Fully Accessible Route for investments by non-residents in the secondary market.
4. Investments by Foreign Portfolio Investors in new Government Securities in 14-year and 30-year tenors issued henceforth shall be either reckoned under the investment limits prescribed in A.P. (DIR Series) Circular No. 03 dated April 26, 2024 , as amended from time to time, and subject to conditions stipulated in A.P. (DIR Series) Circular No.31 dated June 15, 2018 , as amended from time to time or reckoned under investment limits and subject to conditions stipulated in A.P. (DIR Series) Circular No.22 dated February 10, 2022 , as amended from time to time, as the case may be.
5. 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.
6. 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/2024-25/56 · issued 29 Jul 2024. The plain-English explanation above is BankPulse’s own independent summary.
Update your G-Sec trading and investment systems to reflect that new 14-year and 30-year issuances are no longer FAR-eligible.
📜 Compliance
Advise FPI clients that new long-tenor G-Sec investments must comply with standard limit frameworks (e.g., AP DIR Series Circulars).
Monitor secondary market liquidity for existing FAR-eligible 14-year and 30-year stocks, as they remain available for non-resident trading.
Review your bank's own investment and ALM strategies for long-dated G-Secs in light of potential demand shifts.
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 (Primary Dealers, FPIs and non-resident investors, Treasury desks of banks, G-Sec market participants), your first concrete step on “FAR Exclusion for New 14-Year and 30-Year G-Secs” is: “Update your G-Sec trading and investment systems to reflect that new 14-year and 30-year issuances are no longer FAR-eligible.” (RBI issued this 29 Jul 2024).
Circular: RBI/2024-25/56 -- FAR Exclusion for New 14-Year and 30-Year G-Secs
Issued: 29 Jul 2024
Action required: Update your G-Sec trading and investment systems to reflect that new 14-year and 30-year issuances are no longer FAR-eligible.
Action required: Advise FPI clients that new long-tenor G-Sec investments must comply with standard limit frameworks (e.g., AP DIR Series Circulars).
Action required: Monitor secondary market liquidity for existing FAR-eligible 14-year and 30-year stocks, as they remain available for non-resident trading.
Action required: Review your bank's own investment and ALM strategies for long-dated G-Secs in light of potential demand shifts.
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=12712&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.