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Informist, Friday, Jun. 5, 2026

--RBI Malhotra: NRI, OCI invest limits without SEBI registration being raised 

--RBI Malhotra: To give 3-5 yr FCNR B deposit window to banks till Sept 30 
 

NEW DELHI – To attract foreign capital inflows and strengthen the domestic currency, the Reserve Bank of India governor announced several measures after the Monetary Policy Committee's second bi-monthly meeting of 2026-27 (Apr-Mar) as widely expected. For external commercial borrowings, a concessional forex swap facility will be made available to public sector undertakings till Sept. 30 to incentivise external commercial borrowings. Authorised dealer banks will also get a similar facility to cover the full hedging cost Sept. 30 for raising fresh three- to five-year foreign currency non-resident (Bank) deposits. The RBI also proposed restoring the time limit for realisation of export proceeds to nine months.   

Further, the investment limits for non-resident Indian and overseas citizens of India in equity instruments traded on the stock market without Securities and Exchange Board of India registration have been increased. The same facility will now also be extended to all individual persons resident outside India on a par with NRIs and overseas citizens of India. 

To attract stable long-term foreign capital flows, the Department of Economic Affairs also notified changes Friday to the Foreign Exchange Management Rules. The new rules will allow individual persons resident outside India to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme, a route that was so far available only to NRIs and overseas citizens of India, a government release said.

The investment limit will also be increased for an individual Persons Resident Outside India under this scheme to 10% from 5% in any company, with an overall investment limit for all individual Persons Resident Outside India to 24%, from the current 10%, it added.

These policy initiatives including recent trade agreements with major trade partners, opening the insurance sector to 100% foreign direct investment, the ethanol blending programme, the push for energy transition, easing of FDI norms for bordering countries, liberalisation of the external commercial borrowings framework are expected to strengthen India's balance of payments, Malhotra said.

"While these measures are expected to strengthen our balance of payments, we will continue to make the right policy adjustments to further promote exports and attract and incentivise capital inflows," Malhotra said.  End

US$1 = INR 95.3900

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Vaishali Tyagi

Edited by Akul Nishant Akhoury

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