The Government of India and the Reserve Bank of India (RBI) have excluded long-term government bonds with 14-year and 30-year tenors from the Fully Accessible Route (FAR).
The decision was taken amid speculation about more unrestricted inflows by foreign portfolio investors (FPIs) which can trigger uncertainties and risks in the future.
The Reserve Bank, in consultation with the Government of India, introduced a separate channel, called the ‘Fully Accessible Route’ (FAR), for non-resident investment in Government of India dated securities with effect from April 1, 2020.
