RBI has allowed people who reside outside India to purchase Sovereign Green Bonds in the International Financial Services Centre (IFSC).

“Persons resident outside India that maintain a securities account with a depository in IFSC in India may purchase or sell Sovereign Green Bonds issued by the government of India, as per terms and conditions specified by the Reserve Bank,” the RBI gazette notification published on August 10 said.

Accordingly, RBI has notified amendments to Forex Management (Debt Instruments) Regulations, 2024.

RBI Governor Shaktikanta Das had said in April after the MPC meeting that FPIs will be allowed to invest and trade in Sovereign Green Bonds in IFSC.

On August 10, Governor Das told the media: “We are in discussions with the IFSC on allowing investment in green bonds, it should be operationalised by the second half of FY25.”