RBI Relaxes Document Rules for Foreign Investors

The Reserve Bank of India has updated the documentation rules for foreign portfolio investors, allowing banks to accept KYC documents certified by approved authorities overseas. Issued on 18 September 2026 via the RBI (Commercial Banks – Know Your Customer) Amendment Directions, 2026, the change came into effect immediately after a review of existing instructions.

What Changed

Under the new rules, Indian banks can now accept original certified copies of specified KYC documents that have been verified abroad. This facility was earlier available only to non-resident Indians and persons of Indian origin, but the central bank has now officially added foreign portfolio investors to the provision.

Approved Authorities

The list of approved foreign authorities includes authorized officials of overseas branches of scheduled commercial banks registered in India, and branches of overseas banks that have relationships with Indian banks. It also includes a notary public abroad, a court magistrate, a judge, or an Indian embassy or consulate general located in the country where the investor resides.

Core Requirements

This update does not remove the underlying requirement for banks to conduct proper customer identification and checks on foreign investors. Banks must still compare officially valid documents or Aadhaar proofs with the original versions. The change simply creates an alternative operational route for certification and submission, sparing overseas investors from having to complete the process inside India.