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RBI's Big Announcement: CDS Cap Holds at 5%, ₹3.3 Trillion Limit!

RBI's Big Announcement: CDS Cap Holds at 5%, ₹3.3 Trillion Limit!

Hold onto your hats, folks! The RBI just laid down the law: credit default swaps are still strutting their stuff at 5% of corporate bonds, with a jaw-dropping ₹3.3 trillion cap for FY27. Starting April 2026, all investments under the voluntary retention route are stepping into the ring with the general limits. Get ready for a financial showdown, baby!

Quick rundown

  1. RBI retains CDS limit at 5% of corporate bonds.
  2. VRR investments to follow general route limits from 2026.
  3. FPI debt limits raised to Rs 16.33 trillion by March 2027.
  4. G-Sec incremental changes split between general and long-term.
  5. Corporate bond FPI limit increased to Rs 9.91 trillion.

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