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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI updates Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025

12-Aug-2025 | RBI/2024-25/126 FMRD.FMD.No.10/14.01.006/2024-25

Reserve Bank of India (RBI) has updated Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025. Key Highlights of the Update: 1. The Foreign Exchange Management (Deposit) Regulations, 2016 have been updated with respect to Special Rupee Vostro Account for AD Category-I banks. 2. Definition of Security-wise limit under Para 4.3 (iii) regarding limit of investment in Government securities has been amended. The amended definition broadens the ambit of 30% cap applicable to Foreign Portfolio Investor (PFI) investments which will now include investments made via the Special Rupee Vostro Account (SRVA) Route too. 3. Part 5A regarding Special Rupee Vostro Account Route has been added which includes the following: a. Applicability & securities - Foreign Portfolio Investors (FPIs) with a Special Rupee Vostro Account (SRVA) can use their surplus rupee balance to invest in Central Government Securities, including Treasury Bills, following the same rules as FPIs, except that the short-term investment limit does not apply under the SRVA route. b. Investment rules & responsibility - SRVA holders and their AD Category-I banks must ensure compliance with all applicable investment limits and regulations, and all payments (purchase, sale, maturity, interest) must go through the SRVA. c. Role of Banks - AD Category-I banks must open separate security accounts for SRVA holders, provide access to trading platforms, report transactions to the RBI, and ensure full regulatory compliance. For more information, please refer to the official document.

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