Reserve Bank of India expands FAR to include long-term bonds
The Reserve Bank of India just made it easier for global investors to put money into Indian government bonds.
The Fully Accessible Route (FAR), first launched in 2020, now covers all new 15-, 30-, and 40-year bonds, plus green bonds across six maturities.
This update comes as foreign investment in these bonds took a nosedive, from $17.3 billion in FY25 to barely $500,000 between April and June.
RBI announces single ₹4.62L cr cap
RBI also added three existing long-term bonds (6.68% GS 2040, 7.24% GS 2055, and 7.71% GS 2066) to the FAR list, hoping to boost demand and support government borrowing plans.
Plus, they've made things simpler for foreign investors by relaxing some rules and merging investment categories, now there's a single ₹4.62 trillion cap on government bond investments until September 2026.
Markets liked the news: bond yields dipped slightly, showing investor confidence is up thanks to these changes.