RBI Allows Repatriable INR Accounts for Overseas Investors Under NDI Rules

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Repatriable INR Accounts for Overseas Investors

RBI/2026-27/114 A.P. (DIR Series) Circular No. 14; Dated: 15.06.2026

The Reserve Bank of India (RBI) has permitted Authorised Dealer (AD) Category-I banks to open repatriable Indian Rupee (INR) accounts for persons resident outside India to facilitate investments under Schedule III of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.

The directions have come into force with immediate effect.

1. Repatriable INR Accounts Permitted

Under the revised framework, AD Category-I banks may open a repatriable INR account in the name of a person resident outside India for the purpose of making investments permitted under Schedule III of the FEM (Non-debt Instruments) Rules, 2019.

The measure is intended to facilitate investment transactions by overseas investors through a dedicated rupee-denominated account mechanism.

2. Investments Covered Under Schedule III

The facility is available for investments governed by Schedule III of the FEM (Non-debt Instruments) Rules, 2019, which deals with specified investment avenues available to persons resident outside India.

The repatriable INR account may be used for undertaking such eligible investments in accordance with the applicable FEMA framework.

3. Reporting and Monitoring Requirements

The RBI has clarified that reporting of transactions undertaken through these accounts, as well as monitoring of the prescribed investment limits, shall be carried out in the same manner as currently followed for investments made by:

  • Non-Resident Indians (NRIs); and
  • Overseas Citizens of India (OCIs).

Accordingly, the existing compliance and monitoring framework will continue to apply.

4. Immediate Effect

The directions issued by the RBI are effective immediately.

AD Category-I banks may therefore begin opening repatriable INR accounts for eligible overseas investors in accordance with the revised instructions.

5. Objective of the Measure

The RBI’s decision seeks to facilitate investment by persons resident outside India under the FEM (Non-debt Instruments) Rules, 2019, by providing a streamlined banking mechanism for holding and deploying investment funds.

The measure is expected to improve the ease of investment, strengthen operational flexibility for overseas investors, and support the efficient implementation of India’s foreign investment framework under FEMA.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied