Concept:The Fully Accessible Route (FAR) permits non-resident investors to purchase specified Government of India securities without any investment limits.
Explanation:The Reserve Bank of India (RBI) has recently included 10-year Sovereign Green Bonds (SGrBs) under the Fully Accessible Route (FAR) for non-resident investment.
This allows Foreign Portfolio Investors (FPIs), NRIs, and OCIs to invest in these bonds without any cap.
SGrBs are government securities issued to finance environmentally sustainable projects.
The government plans to issue
Rs. 20,000 crore through four SGrB tranches in the second half of FY2024-25, including two 10-year and two 30-year bonds.
The 10-year tenor has now been added to the FAR list, supporting India's inclusion in global bond indices such as JPMorgan's GBI-EM GD.
The FAR was introduced by the RBI in 2020 to attract international capital into Indian Government Securities (G-Secs).
Sovereign Green Bonds were first brought under FAR in 2022-23, and this latest addition strengthens India's green financing framework and global market integration.
This move is expected to boost foreign inflows and support India's climate commitments.
Answer:Option B — 10-Year Sovereign Green Bonds (SGrBs)