RBI Announces Measures to Boost Foreign Capital Inflows

On 5th June 2026, the Reserve Bank of India (RBI) announced a series of measures aimed at attracting foreign capital, strengthening foreign exchange inflows, and enhancing participation of overseas investors in Indian financial markets.

Key Points

Higher Investment Limits for NRIs and OCIs: RBI increased investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in equity instruments traded on Indian stock exchanges without requiring registration with SEBI.
Concessional Forex Swap Facility for PSUs: RBI introduced a concessional foreign exchange swap facility for External Commercial Borrowings (ECBs) raised by Public Sector Undertakings (PSUs).
Support for FCNR(B) Deposits: Authorised Dealer (AD) banks will be allowed to avail a similar facility to bear the full hedging cost while mobilising fresh Foreign Currency Non-Resident Bank [FCNR(B)] deposits with maturities of three to five years.
Expansion of Fully Accessible Route (FAR): RBI expanded the list of government securities eligible under the Fully Accessible Route (FAR) by including all new issuances of:
- o15-year Government Securities
- o30-year Government Securities
- o40-year Government Securities