RBI Eases FPI Rules for Government Bonds: What It Means

RBI scrapped short-term, security-wise and concentration limits for FPIs investing via the general route in G-secs.

FAR widened to include all new 15, 30 and 40-year government bonds, opening the long end to foreigners.

From 1 April 2026, FPIs pay zero tax on interest and capital gains from government securities.

FPIs use only about 6.8% of the FAR limit, so there's huge headroom for inflows.

More foreign bond money supports the rupee, builds forex reserves and can lower borrowing costs.