RBI Permits Banks to Open Repatriable Rupee Accounts for Foreign Investors

The Reserve Bank of India (RBI) has amended foreign exchange regulations to permit individuals residing outside India to maintain designated repatriable rupee accounts for investments in listed Indian companies, as per news reports.  

The changes, notified under the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2026, came into force on 13 June 2026. 

Investment Route Specified 

The amended rules allow investments through inward remittances received via banking channels or from funds held in repatriable deposit accounts maintained under FEMA regulations.  

A designated repatriable rupee account must be opened for this purpose and can be used only for investments covered under the relevant schedule of the regulations. 

Rules for Sale Proceeds 

According to the notification, sale proceeds from equity investments, after deduction of applicable taxes, can either be remitted outside India or credited to the designated rupee account.  

For mutual fund units and National Pension System (NPS) investments held by NRIs and Overseas Citizens of India (OCIs), the proceeds may also be remitted abroad or credited to an eligible bank account maintained by the investor. 

New Reporting Category 

The RBI has also revised reporting requirements by introducing a new category called Individual Foreign Investor (IFI).  

Authorised Dealer Category-I banks will report purchases and transfers of equity instruments made by overseas individuals, including NRIs and OCIs, on Indian stock exchanges through Form LEC (IFI). 

Changes for International Exchange Investments 

The amendment also updates payment and remittance provisions for equity shares of Indian companies listed on international exchanges.  

Subscription amounts may be transferred to a bank account in India or deposited into a foreign currency account of the issuing company.  

Sale proceeds, after taxes, may be remitted overseas or credited to the investor's bank account. 

Read More: US Trade Representative to Visit India for Bilateral Trade Talks on June 23-24, 2026! 

Conclusion 

The amendments update the payment, remittance and reporting framework for overseas individual investments in listed Indian companies. The revised rules took effect from 13 June 2026. 

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