The Reserve Bank of India has issued directions to Authorised Dealer Category I banks to implement amendments to the foreign exchange framework that allow all individual persons resident outside India to invest under Schedule III in equity instruments of listed Indian companies on recognised stock exchanges in India. This route had previously been limited to Non-Resident Indians and Overseas Citizens of India, and the amended rules also provide enhanced investment limits. To facilitate these investments, banks may open a repatriable INR account for an eligible nonresident individual in line with the Foreign Exchange Management (Deposit) Regulations, 2016. Transaction reporting and monitoring of investment limits will follow the same approach currently used for NRI and OCI investments. If an investment under Schedule III is reclassified from foreign portfolio investment to foreign direct investment because prescribed limits are breached or for any other reason, banks must apply the Reserve Bank of India's November 11, 2024 framework for Foreign Portfolio Investors. Banks must also ensure compliance with the amended rules, related reporting regulations and applicable Securities and Exchange Board of India requirements, including by putting in place appropriate systems and procedures and obtaining necessary documents and disclosures. The directions take effect immediately.
Reserve Bank of India2026-06-15
Reserve Bank of India opens Schedule III listed equity investment to all nonresident individuals and permits repatriable INR accounts
The Reserve Bank of India has directed AD Category I banks to implement changes that allow all individual persons resident outside India to invest in listed Indian equities under Schedule III, extending a route previously limited to NRIs and OCIs. Banks may open repatriable INR accounts for these investors, while reporting, limit monitoring and any FPI-to-FDI reclassification must follow existing RBI frameworks. The directions apply immediately.