The Reserve Bank of India (RBI) has quietly rewritten a key section of its Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) regulations, giving non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) a simpler path to put money into Indian equities, mutual funds and the National Pension System. Under the circular issued on 16 June, an individual resident outside India can now maintain a single, specially tagged “repatriable rupee account” in which all investment-related inflows and sale proceeds must be routed. Until now, investors juggled multiple accounts—typically an NRE or NRO deposit along with a portfolio investment scheme (PIS) account—creating operational friction and higher compliance costs.
![RBI allows NRIs and OCIs to open designated repatriable-rupee accounts for investments]()
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The regulation explicitly permits outward remittance of capital gains (after taxes) directly from this account, replacing the earlier requirement to channel funds through a foreign-currency account or to produce a separate chartered-accountant certificate each time money was repatriated. The change aligns the equity regime with the 2023 rule that already allowed designated rupee accounts for real-estate exits by NRIs. Corporate mobility managers say the move matters because stock ownership is often part of relocation packages for returning executives. A simplified banking set-up removes a pain-point that frequently delayed share-vesting or forced employers to hold equity offshore. Investment advisers are urging globally mobile clients to designate the new account quickly, arguing that a single ledger will also make tax reporting under India’s AIS pre-fill system less error-prone. Practically, NRIs can instruct their authorised dealer bank to convert an existing NRE or FCNR deposit into the new account, or open a fresh rupee account altogether. Banks must report transactions in a revamped Form-LEC (Individual Foreign Investor). Because the rule took effect on 13 June, any sale proceeds booked after that date can already be swept out without waiting for the July tax-filing cycle. For the diaspora eyeing India’s still-resilient equity returns, the stopwatch on faster repatriation has officially started.
For those NRIs and OCIs whose cross-border life still involves juggling travel documents and permits, VisaHQ can remove at least one layer of bureaucracy. Its online platform manages Indian and third-country visa applications end-to-end, offers real-time status tracking, and provides concierge document reviews—freeing globally mobile investors to concentrate on deploying capital. Details are available at https://www.visahq.com/india/
The regulation explicitly permits outward remittance of capital gains (after taxes) directly from this account, replacing the earlier requirement to channel funds through a foreign-currency account or to produce a separate chartered-accountant certificate each time money was repatriated. The change aligns the equity regime with the 2023 rule that already allowed designated rupee accounts for real-estate exits by NRIs. Corporate mobility managers say the move matters because stock ownership is often part of relocation packages for returning executives. A simplified banking set-up removes a pain-point that frequently delayed share-vesting or forced employers to hold equity offshore. Investment advisers are urging globally mobile clients to designate the new account quickly, arguing that a single ledger will also make tax reporting under India’s AIS pre-fill system less error-prone. Practically, NRIs can instruct their authorised dealer bank to convert an existing NRE or FCNR deposit into the new account, or open a fresh rupee account altogether. Banks must report transactions in a revamped Form-LEC (Individual Foreign Investor). Because the rule took effect on 13 June, any sale proceeds booked after that date can already be swept out without waiting for the July tax-filing cycle. For the diaspora eyeing India’s still-resilient equity returns, the stopwatch on faster repatriation has officially started.
