No longer current — replaced by Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2
Source: Reserve Bank of India · official publication, rbi.org.in · ~2 min read
Quick answerRBI amended FEMA Non-Debt Instruments Regulations, effective from publication in Official Gazette. Key changes: NRIs/OCIs must designate a single repatriable rupee account for Schedule III investments; NPS subscriptions can use NRO accounts; International Exchange Scheme equity payments clarified via foreign currency accounts or repatriable accounts.
The rule, in the simplest words
NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India) must pick ONE special rupee account (a bank account in India) just for their investments under Schedule III (a list of allowed investments).
NRIs/OCIs can now use their NRO account (a regular rupee account for income earned in India) to pay for NPS (National Pension System, a retirement savings plan).
For buying shares on International Exchanges (stock markets outside India), the money must come from the Indian company's foreign currency account or from a repatriable account (an account that can send money abroad).
Banks must check that NRIs/OCIs do not mix their investment money with other money in the same account.
How it plays out — a real example
A forex & trade-finance officer in Mumbai is helping an NRI customer open an investment account. The officer explains, 'You must choose just one repatriable rupee account for all your Schedule III investments, like buying shares in Indian companies. Also, if you want to join the National Pension System, you can pay from your NRO account now—no need to bring money from abroad.' The officer updates the bank's system to tag that account as the designated one, ensuring no other funds get mixed in.
What changed
Regulation 3.1, Sl. No. III (Schedule III) and X (Schedule XI) were substituted. For Schedule III, NRIs/OCIs must now designate one repatriable rupee account exclusively for investments, and NPS subscriptions can be paid from NRO accounts. For Schedule XI, payment modes for equity shares on International Exchanges were clarified, allowing use of the Indian company's foreign currency account or repatriable accounts.
What it means for you
Banks must ensure NRIs/OCIs designate a single repatriable rupee account for Schedule III investments, preventing commingling. NPS subscriptions now have broader funding sources, including NRO accounts. For International Exchange Scheme transactions, banks need to verify payment flows align with the specified accounts, reducing ambiguity in cross-border equity investments.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update KYC and account opening procedures to require NRIs/OCIs to designate a single repatriable rupee account for Schedule III investments.
Train staff on accepting NRO account funds for NPS subscriptions by NRIs/OCIs.
Review payment processing for International Exchange Scheme equity to ensure funds flow through the Indian company's foreign currency account or repatriable accounts.
Update internal reporting systems to capture the new designated account details for regulatory compliance.
Who it affects
Banks handling NRI/OCI investment accounts, Authorized dealers processing cross-border equity transactions, NPS intermediaries dealing with NRI/OCI subscriptions, Indian companies listed on International Exchanges
Superseded by — Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2
Status change: superseded08 Jul 2026, 13:14 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can an NRI use multiple repatriable rupee accounts for Schedule III investments?
No. The amendment requires a single repatriable rupee account to be designated exclusively for investments under Schedule III.
Are NRO accounts now allowed for NPS subscriptions by NRIs/OCIs?
Yes. The amendment explicitly permits NPS subscriptions to be paid from NRO accounts, in addition to inward remittances or repatriable accounts.
What payment modes are accepted for equity shares under the International Exchange Scheme?
Payment can be made through banking channels to the Indian company's foreign currency account (under FEMA 2015 regulations) or as inward remittance from abroad via repatriable foreign currency/rupee accounts.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byForeign Exchange Management (Mode of Payment and Reporting of Non-Debt Instrumen
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13484&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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