ForumIAS LATEST
- 04 June | MGP Strategy Series | GS Paper 4 (Ethics) with AIR 7 A.R. Rajah Mohaideen Click Here to register for the session →
- 04 June | GS Advance Program begins from 4th June 2026 | First 2 classes open to all Click Here to register for the event →
- 05 June | MGP Strategy Series | GS Paper 3 Strategy Session with AIR 406 Mannat Luthra Click Here to register for the session
- 06 June | Open Orientation on Essay Guidance Program (EGP 2026) Click Here to register →
- 07 June | Open Orientation for Current Affairs for Mains 2026 Click Here to register →
- 07 June | Sociology Optional Strategy Session with AIR 10 Ujjwal Priyank Click Here to register →
RBI allows FPIs to buy T-bills; debt limit stays(The Hindu)
What has happened?
The Reserve Bank of India (RBI) has allowed foreign portfolio investors (FPIs) to invest in treasury bills issued by the central government
Earlier
Foreign portfolio investors were permitted to invest in corporate bonds with minimum residual maturity of above one year
Consistency
- The April circular was issued to bring consistency across debt categories and hence it was stipulated that investments by an FPI in corporate bonds with residual maturity below one year should not exceed 20% of the total investment of that FPI in corporate bonds.
- According to the circular, if there are investments in securities with less than one year residual maturity as on May 2, and it constitutes more than 20% of the total investment in any category, the FPI will have to bring such share below 20% within a period of six months from the date of the circular
