- The Reserve Bank of India (RBI) has introduced a separate channel, namely ‘Fully Accessible Route’ (FAR), to enable non-residents to invest in specified government bonds with effect from April 1.
About Fully Accessible Route (FAR)
- The move follows the Union Budget announcement that certain specified categories of government bonds would be opened fully for non-resident investors without any restrictions.
- Under FAR, eligible investors can invest in specified government securities without being subject to any investment ceilings.
- This scheme shall operate along with the two existing routes, viz., the Medium Term Framework (MTF) and the Voluntary Retention Route (VRR).
- This will substantially ease access of non-residents to Indian government securities markets and facilitate inclusion in global bond indices.
- This would facilitate inflow of stable foreign investment in government bonds.