Main Note - [1.1.3 Fully Accessible Route (FAR)](Foreign%20Investment%20in%20India%20(Various%20Routes).md#1.1.3%20Fully%20Accessible%20Route%20(FAR)) in [Foreign Investment in India (Various Routes)](Foreign%20Investment%20in%20India%20(Various%20Routes).md)
## 1.1.3 Fully Accessible Route (FAR)
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1. It is one of the [routes](Foreign%20Investment%20in%20India%20(Various%20Routes).md#1.1%20Debt%20(Rupee)-%203%20Routes) by which [FPIs](Foreign%20Investment%20in%20India%20(Various%20Routes).md#1.%20FPI%20(Debt%20&%20Equity)-%20Foreign%20Portfolio%20Investments) (along with any person resident outside India) can invest in govt. securities in India, but without any limit.
2. It was first announced in the Union Budget 2020-21 and came into effect from [April 01, 2020](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11849&Mode=0).
3. [March 30, 2020](RBI_Notification_20200330_Fully%20Accessible%20Route%20for%20Investment%20by%20Non-residents%20in%20Government%20Securities.pdf) - RBI introduced the separate route viz., Fully Accessible Route (FAR) for investment by non-residents in specified dated securities issued by the Government of India.
4. It is only for govt. debt.
5. The aim was also to increase capital inflows into debt by achieving the inclusion of India’s G-secs in global bond indices. Hence RBI allowed FPIs to invest in a group of G-Secs without any restrictions.
1. Over time, virtually all securities will fall under the FAR category, the move [(T Rabi Sankar, Oct 14, 2021)](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1133) is unambiguously towards an eventual unfettered access for non-residents into Government securities. Efforts to get India included under global bond indexes and the complementary move towards placing G-secs under global custodians, once implemented, will encourage debt flows in future.
6. ==There is no limit on investment in G-Secs under this route.== The ['General Route'](Foreign%20Investment%20in%20India%20(Various%20Routes).md#1.1.1%20General%20Route) has limits.
7. It is for FPIs, NRIs and OCIs and any other person resident outside India, as may be notified by the Reserve Bank from time to time). *Investors other than above, may invest through International Central Securities Depositories.*
8. All securities included under the FAR are in this [list](https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12765), and also on RBI's website [section](https://rbi.org.in/scripts/Bs_viewcontent.aspx?Id=3876) - Financial Markets/Financial Markets Watch
All new issuances of 5-year, 7-year, 10-year, 14-year and 30-year tenors by the Central Government; and any other security that the Reserve Bank may notify in this regard.
## Timeline
1. [March 30, 2020](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11850&Mode=0)March 30, 2020 - Fully Accessible Route’ for Investment by Non-residents in Government Securities - (specified securities)
1. All new issuances of Government securities of 5-year, 10-year and 30-year tenors from the financial year 2020-2 will be eligible for investment under the FAR as ‘specified securities’.
2. July 7, 2022 - ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Additional specified securities. [Link](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12354&Mode=0)
3. [Jan 23, 2023](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12444&Mode=0) - all Sovereign Green Bonds issued by the Government in the fiscal year 2022-23 were designated as ‘specified securities’ under the FAR.
4. [Nov 8, 2023](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=12563) - all Sovereign Green Bonds issued by the Government in the fiscal year 2023-24 were designated as ‘specified securities’ under the FAR.
5. [Nov 07, 2024](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=12747) - Sovereign Green Bonds of 10-year tenor issued by the Government in the second half of the fiscal year 2024-25 as ‘specified securities’ under the FAR.
6. [Jul 06, 2022](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=53979) - All new issuances of G-Secs of 7-year and 14-year tenors, including the current issuances of 7.10% GS 2029 and 7.54% GS 2036, will be designated as specified securities under the FAR.
1. All new issuances of 5-year, 7-year, 10-year, 14-year and 30-year tenors by the Central Government; and
2. Any other security that the Reserve Bank may notify in this regard.
7. [July 29, 2024](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=12712) - On a review and in consultation with the Government, it has been decided to exclude all new *(only new)* securities of 14-year and 30-year tenors from the Fully Accessible Route.
8. [June 05, 2026](RBI_Notification_20260605_Investments%20by%20Foreign%20Portfolio%20Investors%20in%20Government%20Securities%20–%20Amendments%20to%20the%20regulatory%20framework.pdf) - All new issuances in 15-year, 30-year, and 40-year tenors were [added](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=13464) to the list.
1. This led to foreign capital inflows in these G-Secs.
## Specified Securities
1. Current list - [Aug 17, 2026](https://rbi.org.in/scripts/Bs_viewcontent.aspx?Id=3876) - RBI released list of Specified Securities (all new issuances of 5, 7, 10, 15, 30 and 40 years, and any additional securities), under the FAR route.
## Inflows & Inclusion in Bond Indexes
1. The inclusion in the indexes brought in capital inflows into the FAR securities.
1. [September 21, 2023](https://www.reuters.com/world/india/what-indias-inclusion-jpmorgans-bond-index-means-its-markets-2023-09-22/) - Inclusion of Indian G-Secs in GBI including the J.P. Morgan GBI-EM Global index suite, beginning on June 28, 2024, and reaching its full 10% cap by March 31, 2025.
2. [March 5, 2024](https://www.bloomberg.com/company/press/bloomberg-announces-india-far-bonds-inclusion-in-the-bloomberg-emerging-market-em-local-currency-government-index/) - the Bloomberg Emerging Market Local Currency Government Index
3. October 8, 2024 - the FTSE Emerging Markets Government Bond Index
## Risk & Road-ahead for FAR Route
> [!normalg]
> 1. With the Fully Accessible Route, as discussed above, over time ==the entire G-sec issuance would be eligible for non-resident investment.==
> 2. While experience of other countries suggest that non-residents are unlikely to hold a major portion of outstanding stock, substantial debt holdings might make India vulnerable to the risk of sudden reversals/capital outflows. *Related* - [[Capital Flows - Account & Management#Arguments Against Capital flows|Arguments against capital flows]]
> 3. Since this channel was permitted in the context of inclusion of India’s G-secs in global bond indices, there is a natural safety mechanism as index investors are unlikely to indulge in sudden reversals. ==It may need to be considered, from a macro-prudential perspective, whether FAR should be linked to index inclusion.==
> 4. Must Read - [Arguments Against Capital flows](Capital%20Flows%20-%20Account%20&%20Management.md#Arguments%20Against%20Capital%20flows) in [Capital Flows - Account & Management](Capital%20Flows%20-%20Account%20&%20Management.md)
## Data
1. [Link](https://www.ccilindia.com/fpi-home-page) to CCIL page
1. Share of FPIs in FAR G-Sec Outstanding
2. [Daily (Month-wise) FPI investments in various instruments and market types](https://www.fpi.nsdl.co.in/web/Reports/Monthly.aspx) on NSDL page:
1. Equity
2. Debt
1. Debt-General Limit
2. Debt-VRR
3. **Debt-FAR**
3. Hybrid
4. Alternative Investment Funds (AIFs)
5. Mutual Funds
1. Equity schemes
2. Debt schemes
3. Hybrid schemes
4. Solution oriented schemes
5. Other schemes
3. [Category wise AUC data for all clients of Custodians on NSDL](https://www.fpi.nsdl.co.in/web/Reports/ReportDetail.aspx?RepID=22)
4. [AUC Country-wise (top 10 countries) data](https://www.fpi.nsdl.co.in/web/Reports/ReportDetail.aspx?RepID=14)
## Sovereign Green Bonds
It is not a route, but just type of bonds. They come under this FAR framework.
1. It is only for G-Secs
2. Union Budget FY 2022-23 - Union Finance Minister announced that Sovereign Green Bonds will be issued for mobilising resources for green projects.
3. [Nov 2022](PIB_20221109_Union%20Finance%20Minister%20Smt.%20Nirmala%20Sitharaman%20approves%20India’s%20First%20Sovereign%20Green%20Bonds%20Framework.pdf) - GoI India approved the India’s First Sovereign Green Bonds Framework
1. Green Finance Working Committee (GFWC) was constituted by the Finance Ministry, chaired by the DEA, to validate key decisions, select eligible projects, and oversee the framework.
2. ==[Framework](GoI_2022_Framework%20for%20Sovereign%20Green%20Bonds%20Government%20of%20India_DEA.pdf) (2022) for Sovereign Green Bonds of Government of India by DEA.==
4. [April 05, 2024](RBI_Notification_20240829_Scheme%20for%20Trading%20and%20Settlement%20of%20Sovereign%20Green%20Bonds%20in%20the%20International%20Financial%20Services%20Centre%20in%20India.pdf) - RBI announced the Scheme for Trading and Settlement of Sovereign Green Bonds by eligible foreign investors in the International Financial Services Centre (IFSC) in India, effective from August 29, 2024.
5. Feb 2026 - [Article](CCIL_Rakshitra_202602_Frontrunner%20to%20Backburner–%20Status%20Update%20on%20Indian%20Sovereign%20Green%20Bonds.pdf) titled "Frontrunner to Backburner – Status Update on Indian Sovereign Green Bonds" by Payal Ghose and Abhishek, published in Feb 2026 edition of CCIL's Monthly Newsletter Rakshitra.
6. [June 05, 2026](RBI_Notification_20260605_Investments%20by%20Foreign%20Portfolio%20Investors%20in%20Government%20Securities%20–%20Amendments%20to%20the%20regulatory%20framework.pdf) - All new issuances in 5-year, 7-year, 10-year, 15-year, 30-year, and 40-year tenors, were [added](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=13464) to the list.
## Related Notes
1. [Foreign Investment in India (Various Routes)](Foreign%20Investment%20in%20India%20(Various%20Routes).md)
## Regulatory Framework
1. [Jan 7, 2025](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12765) - Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025
2. [Others](Foreign%20Investment%20in%20India%20(Various%20Routes).md#Regulatory%20framework)
## References
1. [Link](Foreign%20Investment%20in%20India%20(Various%20Routes).md#References)
### Others
1. Payal Ghose and Abhishek. Feb 2026. [Article](CCIL_Rakshitra_202602_Frontrunner%20to%20Backburner–%20Status%20Update%20on%20Indian%20Sovereign%20Green%20Bonds.pdf) titled "Frontrunner to Backburner – Status Update on Indian Sovereign Green Bonds". CCIL's Monthly Newsletter Rakshitra.
2. Payal Ghose and Samarpita Bhowmik. June 2026. From Local to Global: Evolution of the Fully Accessible Route. [pdf](CCIL_Rakshitra_202606_From%20Local%20to%20Global%20Evolution%20of%20the%20Fully%20Accessible%20Route.pdf)
3. [References](Foreign%20Investment%20in%20India%20(Various%20Routes).md#References)