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What is Fully Accessible Route (FAR)?

Reserve Bank of India (RBI) has made addition to the specified securities under Fully Accessible Route (FAR).

What is Fully Accessible Route (FAR)?

An announcement was made in the Union Budget 2020-21 that certain specified categories of Central Government securities would be opened fully for non-resident investors without any restrictions, apart from being available to domestic investors as well. 

Accordingly, Reserve Bank of India (RBI) had introduced a separate route viz., Fully Accessible Route (FAR) for investment by non-residents in securities issued by the Government of India.

Who are eligible investors under FAR?

Eligible investors shall mean any “person resident outside India” as defined in Foreign Exchange Management Act, 1999.

Which are specified securities under FAR?

Specified securities include -

  • Government securities of 5-year and 10-year tenors from the financial year 2020-21.
  • Government securities of 7-year tenors (w.e.f. July 07, 2022).
  • Sovereign Green Bonds issued by the Government in the fiscal year 2022-23 and 2023-24.
  • Sovereign Green Bonds of 10-year tenor issued by the Government in the second half of the fiscal year 2024-25.
Which securities have been excluded from FAR?

All new securities of 14-year and 30-year tenors have been excluded from FAR (w.e.f. July 29, 2024).


References

Reserve Bank of India. (2020, March 30). ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11849&Mode=0

Reserve Bank of India. (2020, March 30). 'Fully Accessible Route’ for Investment by Non-residents in Government Securities - (specified securities)'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11850&Mode=0

Reserve Bank of India. (2022, July 07). ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Additional specified securities'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12354&Mode=0

Reserve Bank of India. (2023, January 23). ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12444&Mode=0

Reserve Bank of India. (2023, November 08). ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12563&Mode=0

Reserve Bank of India. (2024, November 07). '‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12747&Mode=0

Reserve Bank of India. (2024, July 29). ‘‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Exclusion of new issuances in 14-year and 30-year tenor securities'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12712&Mode=0


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