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Reserve Bank of India (“RBI”) through circular no. RBI/2026-27/10 A.P. (DIR Series) Circular No. 06 dated 10.04.2026 notified the amendment (“NRI Amendment”)1 to the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 (“NRI Master Directions”).
The salient amendments made in the NRI Master Directions are as follow:
- Definition of Non-Resident Indian (“NRI”): NRI Amendment introduce definition of NRI as an individual resident outside India who is a citizen of India.
- Investment Channels: Investments by NRIs in debt instruments shall be in terms of instructions stipulated under the newly added Part – 5(B) of the NRI Master Directions, which provides that NRI may invest in debt instruments as specified sub paragraphs (B) and (C) of paragraph 1 of Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 (“FEMA DI Regulations”). Pertinently, such NRI investments are not subject to any investment limit under the NRI Master Directions.
- Use of debt securities as collateral with stock exchanges: Paragraph 10 A provides that Foreign Portfolio Investors may offer Government securities and non-convertible debentures/bonds issued by an Indian company, acquired in terms of the NRI Master Directions, as collateral to recognised stock exchanges in India for their transactions in exchange traded derivative contracts.
- Mode of payment and remittance: The mode of payment for investment in eligible instruments by all non-residents, and the remittance/credit of sale or maturity proceeds thereof, now shall be in terms of paragraphs 2 and 4 of Schedule 1 to the FEMA DI Regulations.
The NRI Amendment have come into force since the day they were issued, i.e., 10.04.2026.
Footnote
1. RBI's Master Direction - Non-resident Investment in Debt Instruments Directions, 2025
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