RBI increases foreign investment limits for debt

Mumbai: The Reserve Bank of India said on Thursday it would raise the foreign investment limits for government bonds by Rs 80 billion (USD 1.22 billion) to Rs 2.5 trillion for the October-December quarter, after current quotas had been almost fully exhausted.

The RBI said the limits for long-term investors in government bonds would be raised by Rs 60 billion, while the limits for general investors would be raised by Rs 20 billion.

The banking regulator also raised the limits for state development loans by Rs 62 billion, with Rs 47 billion of that raised for long-term investors and Rs 15 billion for general investors.

The changes in limits would be effective as of October 3.