The RBI has amended the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019 (‘Reporting Regulations’) by way of an amendment dated June 13, 2026. The amendments will come into force from the date of their publication in the Official Gazette.

Pursuant to the amendment, RBI has revised the payment and remittance framework for investments by individual persons resident outside India, including Non-Resident Indians (‘NRIs’) and Overseas Citizens of India (‘OCIs’), on a repatriation basis. Prior to the amendment, investments by NRIs and OCIs were permitted as inward remittance from abroad through banking channels or out of funds held in an NRE account maintained in accordance with the Deposit Regulations. Post the amendment, individual residents outside of India including NRIs and OCIs can make investments by inward remittance through banking channels or out of funds held in permitted repatriable deposit accounts maintained in accordance with the Deposit Regulations. A repatriable rupee account is required to be designated and used exclusively for investments under Schedule III of the Reporting Regulations. Further, for subscriptions to the National Pension System by NRIs/OCIs, payment may be made by inward remittance through banking channels or out of funds held in any repatriable foreign currency or rupee account or NRO account, maintained in accordance with the Deposit Regulations.

With respect to remittance of sale proceeds, prior to the amendment, sale proceeds of equity instruments (net of taxes) may be remitted by an NRI / OCI outside India or may be credited to the NRE (Portfolio Investment Scheme) account of the NRI / OCI investor, while sale proceeds (net of taxes) of mutual fund units and National Pension System subscriptions may be remitted outside India or credited to NRE (Portfolio Investment Scheme) / Foreign Currency Non-Resident (Bank) (FCNR(B)) / NRO account of the NRI / OCI investor, at its discretion. Post the amendment, the sale proceeds (net of taxes) of equity instruments may be remitted outside India or credited to the designated rupee account of the investor, while sale proceeds of mutual fund units and National Pension System subscriptions may be remitted outside India or credited to any account maintained in accordance with the Deposit Regulations at the option of the NRI/OCI investor.

The RBI has also revised the payment mechanism for purchase or subscription of equity shares of Indian companies listed on International Exchanges by permissible holders. Prior to the amendment, consideration for purchase / subscription of equity shares of an India company listed on International Exchange could be paid through banking channels to a foreign currency account of the Indian company or as inward remittance from abroad through banking channels. Post the amendment, consideration for purchase / subscription of equity shares of an India company listed on International Exchange may be paid either to the foreign currency account of the Indian company, or through inward remittance from abroad through banking channels or out of funds held in any repatriable foreign currency or rupee account maintained in accordance with the Deposit Regulations.

Further, designated Category-I AD Banks are now required to report to RBI in Form LEC (IFI) (previously Form LEC (NRI)) the purchase or transfer of equity instruments by individual persons resident outside India, including NRIs and OCIs, on stock exchanges in India.