The Reserve Bank of India (“RBI”) in exercise of powers conferred under Sections 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 and Section 45W of the Reserve Bank of India Act, 1934 (“RBI Act”), vide Circular No. RBI/2024-25/126 FMRD.FMD.No.10/14.01.006/2024-25[1] dated January 07, 2025, issued the Master Directions – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 (“Master Directions”). The Master Directions shall come into force with immediate effect.
RBI has periodically issued necessary directions via A.P. (DIR Series) Circulars, as well as various directions under Section 45W of the RBI Act, to regulate non-resident investment in debt instruments in India. Accordingly, these Master Directions consolidate all such circulars concerning the non-resident investment in Indian debt instruments.
[1]https://website.rbi.org.in/web/rbi/-/master-direction-reserve-bank-of-india-non-resident-investment-in-debt-instruments-directions-2025