Sovereign Green Bonds Now Open to Non-Residents via FAR
Current · Source: Reserve Bank of India · RBI/2024-25/88 · issued 07 Nov 2024 · ~1 min read
Quick answerRBI has added 10-year Sovereign Green Bonds issued in H2 FY25 to the Fully Accessible Route, allowing unrestricted non-resident investment alongside domestic investors, effective immediately.
The rule, in the simplest words
Non-resident investors (people or companies from other countries) can now buy 10-year Sovereign Green Bonds (government bonds that fund eco-friendly projects) without any limits.
These bonds are now part of the 'Fully Accessible Route' (a special path that lets foreign investors buy Indian government bonds easily).
Domestic investors (people in India) can also buy these bonds, just like before.
This rule started right away on November 7, 2024.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, updates her bank's system to mark 10-year Sovereign Green Bonds as 'FAR-eligible' for a non-resident client, Mr. Patel, who wants to invest in green projects from abroad. She then tells her treasury team that these bonds are now open to foreign investors without restrictions, helping them plan for more foreign money coming in.
What changed
RBI designated 10-year Sovereign Green Bonds issued in the second half of FY2024-25 as 'specified securities' under the Fully Accessible Route (FAR). This means non-resident investors can now invest in these bonds without any restrictions, similar to other FAR-eligible government securities.
What it means for you
Banks and lenders can expect increased foreign portfolio inflows into Sovereign Green Bonds, potentially lowering yields and improving liquidity in this segment. This aligns with India's green finance goals and broadens the investor base for sustainable debt instruments.
What you must do
Update internal systems to classify 10-year Sovereign Green Bonds as FAR-eligible for non-resident clients.
Inform treasury and compliance teams about the immediate applicability of this circular.
Monitor foreign investment limits and reporting requirements for these new specified securities.
Advise clients on the unrestricted access for non-residents to these green bonds.
Who it affects
All participants in the Government Securities market, Non-resident investors in Indian debt, Banks and primary dealers dealing in G-Secs, 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 government securities without any restrictions, such as limits or lock-in periods.
Which specific bonds are now included under FAR?
Sovereign Green Bonds with a 10-year tenor issued by the Government in the second half of fiscal year 2024-25 are now designated as specified securities under FAR.
When does this circular take effect?
The directions are applicable with immediate effect from November 7, 2024, the date of the circular.
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/88
FMRD.FMD.No.06/14.01.006/2024-25
November 07, 2024
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 2024 - March 2025’ dated September 26, 2024 , issued by the Reserve Bank, notifying, inter alia, the issuance calendar for Sovereign Green Bonds for the second half of the fiscal year 2024-25. 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 the following circulars:
FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020;
FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022 ;
FMRD.FMID.No.07/14.01.006/2022-23 dated January 23, 2023 ;
FMRD.FMID.No.04/14.01.006/2023-24 dated November 08, 2023 ; and
FMRD.FMID.No.03/14.01.006/2024-25 dated July 29, 2024 .
3. It has now been decided to also designate Sovereign Green Bonds of 10-year tenor issued by the Government in the second half of the fiscal year 2024-25 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/2024-25/88 · issued 07 Nov 2024. The plain-English explanation above is BankPulse’s own independent summary.
Update internal systems to classify 10-year Sovereign Green Bonds as FAR-eligible for non-resident clients.
📜 Compliance
Inform treasury and compliance teams about the immediate applicability of this circular.
Monitor foreign investment limits and reporting requirements for these new specified securities.
Advise clients on the unrestricted access for non-residents to these green 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 debt, Banks and primary dealers dealing in G-Secs, Treasury departments of financial institutions), your first concrete step on “Sovereign Green Bonds Now Open to Non-Residents via FAR” is: “Update internal systems to classify 10-year Sovereign Green Bonds as FAR-eligible for non-resident clients.” (RBI issued this 07 Nov 2024).
Circular: RBI/2024-25/88 -- Sovereign Green Bonds Now Open to Non-Residents via FAR
Issued: 07 Nov 2024
Action required: Update internal systems to classify 10-year Sovereign Green Bonds as FAR-eligible for non-resident clients.
Action required: Inform treasury and compliance teams about the immediate applicability of this circular.
Action required: Monitor foreign investment limits and reporting requirements for these new specified securities.
Action required: Advise clients on the unrestricted access for non-residents to these green 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=12747&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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