RBI allows overseas individuals to open repatriable rupee accounts
Mumbai,Jun 15, 2026
Move operationalises Centre's decision to expand direct equity investment access beyond NRIs and OCIs
The Reserve Bank of India (RBI) has permitted authorised dealer (AD) banks to open repatriable rupee accounts for overseas individuals investing in listed Indian companies, operationalising the government’s move to broaden participation in the domestic equity market beyond Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).
The new norms came into effect immediately, the central bank said in a notification issued on June 13 and uploaded to its website on Monday.
The RBI amended foreign exchange regulations governing payment and reporting requirements for non-debt investments following changes made by the Centre to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. The amendment allows all individuals resident outside India to invest in equity instruments of listed Indian companies under Schedule III of the regulations.
Under the revised framework, overseas individual investors can make investments through inward remittances or funds held in repatriable deposit accounts. Such investors will be required to designate a repatriable rupee account that will be used exclusively for investments under this route.
The central bank also clarified that sale proceeds from equity investments can either be remitted overseas or credited to the designated rupee account after payment of applicable taxes.
The move is expected to simplify the investment process for foreign individual investors and provide a dedicated banking channel for equity market transactions.
In addition, the RBI has expanded reporting requirements by introducing a new category — Individual Foreign Investor (IFI). Under this category, authorised dealer banks will report purchases and transfers of equity instruments undertaken by overseas individuals, including NRIs and OCIs.
The notification also revises provisions relating to investments in shares of Indian companies listed on international exchanges by specifying the permissible modes of payment and repatriation of sale proceeds.
The regulatory changes form part of a broader effort by policymakers to attract foreign capital, deepen participation in Indian financial markets, and provide greater flexibility to overseas investors seeking exposure to listed Indian companies.
[The Business Standard]
