RBI makes investing easier for UAE NRIs
India’s central bank has taken major steps to make it easier for non-resident Indians (NRIs) to invest back home. The Reserve Bank of India (RBI) has raised borrowing limits for share-backed loans and IPO financing while simplifying rules on foreign investment and external borrowing.
The move is part of India’s broader push to deepen capital markets, attract overseas investors, and reduce transaction costs. For NRIs in the UAE, this means greater flexibility to invest in equities, expand India-linked businesses, and manage currency exposure more efficiently.
Investors can now borrow up to ₹10 million against shares or units of real estate and infrastructure trusts, and up to ₹2.5 million for IPO subscriptions — more than double the previous limits. These higher ceilings give UAE NRIs added leverage to participate in India’s equity markets without having to sell assets.
While deposit returns on NRE/NRO accounts are expected to stay stable in the near term, analysts say the reforms could enhance long-term opportunities. Low inflation and a steady rupee continue to support India’s financial stability, while the RBI’s efforts to internationalise the rupee aim to cut currency conversion costs in cross-border deals.
The RBI is also easing compliance under FEMA and rationalising external commercial borrowing (ECB) rules, helping NRIs expand and operate India-linked ventures with fewer restrictions. Exporters, including NRI-owned businesses, will now be able to hold foreign currency earnings longer, improving liquidity and reducing exposure to short-term exchange rate fluctuations.
With inflation cooling and policy rates steady, India remains an attractive investment destination for overseas Indians. The RBI’s latest measures mark another step toward integrating NRI wealth into the country’s growth story while ensuring market stability.
