Reserve Bank of India (RBI) Amends Investment Rules for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)

Key facts

• The Reserve Bank of India (RBI) has implemented the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2026, effective from 13 June 2026.
• Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are now permitted to maintain designated repatriable rupee accounts specifically for investments made on a repatriable basis.
• Subscription to the National Pension System (NPS) by NRIs and OCIs can be funded through inward remittances from abroad or via funds held in repatriable foreign currency, rupee, or Non-Resident Ordinary (NRO) accounts.
• Sale proceeds from equity instruments, mutual fund units, and NPS investments by NRIs and OCIs may be remitted outside India or credited to their designated rupee accounts net of taxes.
• Authorised Dealer Category I banks are mandated to report the purchase or transfer of equity instruments by individual foreign investors on Indian stock exchanges to the RBI using Form LEC (IFI).