New Delhi, July 22 -- The Reserve Bank of India (RBI) on Tuesday released draft 'Foreign Exchange Management (Foreign Investment) Rules, 2026', proposing a simplified and principle-based framework to govern foreign direct investment (FDI) in India.

The central bank has invited comments from stakeholders by August 31.

The draft rules aim to replace the existing Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, in line with the Union Budget 2026-27 announcement of a comprehensive review of the foreign investment regime.

The proposed framework seeks to rationalise provisions, harmonise definitions and create a clearer regulatory structure to reduce complexity.

According to the RBI, the new rules are designed to align with e...