RBI Raises Foreign Investment Limits In Bonds, Tweaks Rules

Mumbai: The Reserve Bank of India on Monday increased the investment limits by foreign investors in government bonds by Rs 11,000 crore to Rs 2.42 lakh crore, while also tweaking rules to attract more long-term investments.

As part of the additional limits, the RBI increased the limits for the "general" category by Rs 2,800 crore to Rs 1.88 lakh crore, and the limits for the "long-term" category by Rs 8,200 crore to Rs 54,300 crore.

The revisions will be effective from July 4, 2017, RBI added.

As part of its occasional changes to investment rules, the RBI also said 75 percent of the future increases in limits for foreign investors will be allocated to the "long-term" category and 25 percent for "general."

The RBI added it would end the practice of transferring unutilised limits from the "long-term" category to the "general" category.