RBI proposes easier FDI compliance regime, seeks public comments

Here’s a simple, paraphrased version with changed wording:

The Reserve Bank of India (RBI) on Tuesday proposed a new principle-based regulatory framework aimed at simplifying rules, aligning definitions, and making regulations clearer to reduce compliance requirements for foreign investors. The central bank released the draft Foreign Exchange Management (Foreign Investment) Rules, 2026 for public feedback, which will replace the existing 2019 rules. Comments have been invited until August 31.

According to the RBI, the proposed framework is designed to improve ease of doing business by introducing simpler procedures, lowering compliance burden, and offering more operational flexibility through a transparent and investor-friendly system.

The revision of the Non-Debt Instruments (NDI) Rules was announced in the Union Budget 2026–27 as part of the government’s effort to create a more modern and user-friendly foreign investment framework. A committee was later formed by the Centre to review the current rules, and based on its recommendations, the RBI drafted the new regulations in consultation with the government and other stakeholders.