The RBI has introduced a 6-point policy package to boost foreign capital inflows and stabilize the Indian rupee. Under the Fully Accessible Route (FAR), RBI has expanded the scope of 'specified securities' to include new central government securities (G-Secs) with tenors of 15, 30, and 40 years.
To optimize foreign portfolio capital flows, RBI has abolished historical entry bottlenecks under the General Route, including short-term investment lock-ins, concentration limits, and individual security caps for Foreign Portfolio Investors (FPIs).
Equity investment ceilings have been increased for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) without SEBI registration. A concessional forex swap facility is introduced for External Commercial Borrowings (ECBs) raised by Central Public Sector Enterprises (CPSEs) to insulate public infrastructure funding from currency volatility.
RBI will bear the full hedging costs for Authorized Dealer (AD) banks that raise fresh 3 to 5-year Foreign Currency Non-Resident (Bank) (FCNR(B)) deposits, valid until September 2026. The timeframe for exporters to repatriate and realize international sales revenue is reduced to 9 months from the previous 15 months.
