The Reserve Bank of India (RBI) has amended the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, opening the door for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and any “individual person resident outside India” to maintain a designated, fully repatriable rupee account for portfolio investments in India. Published on 13 June and reported by the Economic Times on 16 June, the change is more than semantic. Previously, sale proceeds of shares or mutual-fund units had to be funnelled through foreign-currency or non-resident external (NRE) accounts, prolonging settlement and creating friction for global mobility professionals managing assignee compensation or equity plans. Under the new rule, proceeds can be credited to the special rupee account and wired overseas without separate FEMA approvals.
![RBI allows NRIs and OCIs to hold repatriable rupee accounts, simplifying investment inflows]()
For expatriates who also need to navigate Indian visa renewals or arrange travel documents for accompanying family members, VisaHQ’s India portal (https://www.visahq.com/india/) provides an end-to-end online application process, expert document review, and real-time status tracking. By offloading the administrative burden of consular paperwork, globally mobile employees can focus on setting up and managing their new rupee investment accounts with minimal distraction.
Context: India’s diaspora now numbers an estimated 32 million, and expatriate employees frequently receive stock or ESOP awards in their Indian entities. The new facility aligns with the Finance Ministry’s push to deepen domestic capital markets while making compliance simpler for cross-border workers. It also echoes similar relaxations in Singapore and Indonesia, where resident directors can already use local-currency investment accounts. Implications for employers: Global companies that grant India-listed equity can consolidate payroll withholding and share-sale remittances through the designated rupee account, reducing FX fees. Tax teams should, however, update withholding logic: while proceeds are freely repatriable, taxes must still be settled in India before funds leave the country. Next steps: Authorised Dealer Category-I banks must file Form LEC (IFI) for every equity transfer involving a foreign individual. Mobility managers should liaise with their treasury partners to open the new account type ahead of upcoming vesting cycles.
For expatriates who also need to navigate Indian visa renewals or arrange travel documents for accompanying family members, VisaHQ’s India portal (https://www.visahq.com/india/) provides an end-to-end online application process, expert document review, and real-time status tracking. By offloading the administrative burden of consular paperwork, globally mobile employees can focus on setting up and managing their new rupee investment accounts with minimal distraction.
Context: India’s diaspora now numbers an estimated 32 million, and expatriate employees frequently receive stock or ESOP awards in their Indian entities. The new facility aligns with the Finance Ministry’s push to deepen domestic capital markets while making compliance simpler for cross-border workers. It also echoes similar relaxations in Singapore and Indonesia, where resident directors can already use local-currency investment accounts. Implications for employers: Global companies that grant India-listed equity can consolidate payroll withholding and share-sale remittances through the designated rupee account, reducing FX fees. Tax teams should, however, update withholding logic: while proceeds are freely repatriable, taxes must still be settled in India before funds leave the country. Next steps: Authorised Dealer Category-I banks must file Form LEC (IFI) for every equity transfer involving a foreign individual. Mobility managers should liaise with their treasury partners to open the new account type ahead of upcoming vesting cycles.
