The Reserve Bank of India (RBI) has expanded the Fully Accessible Route (FAR) to include 10-year Sovereign Green Bonds for non-resident investments. Previously, the FAR allowed certain government securities to be fully accessible to both non-residents and domestic investors, as specified in several RBI circulars since March 2020. The inclusion of these Sovereign Green Bonds aligns with the issuance calendar for marketable dated securities set for October 2024 to March 2025, which was released in September 2024. This initiative enables non-resident investors to contribute to sustainable financing within India by investing in designated green projects. The updated directive applies immediately and falls under Section 45W of the Reserve Bank of India Act, 1934.
Reserve Bank of India
RBI/2024-25/88
FMRD.FMD.No.06/14.01.006/2024-25 Dated: 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:
1. FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020;
2. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022;
3. FMRD.FMID.No.07/14.01.006/2022-23 dated January 23, 2023;
4. FMRD.FMID.No.04/14.01.006/2023-24 dated November 08, 2023; and
5. 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
