Mumbai, July 21 -- In order to reduce the compliance burden and make it easier for foreign investors to do business in India, the Reserve Bank of India (RBI) on Tuesday released draft rules to simplify the country's foreign investment regulations and align them with the government's foreign direct investment (FDI) policy.

The rules, open for public comment till 31 August, follow the Budget 2026-27 call for a review of non-debt instruments (NDI) rules to modernize India's foreign investment framework, RBI said.

One of the biggest changes proposed is a clear separation of the government's FDI policy from the Foreign Exchange Management Act's (Fema) operational provisions.

Under the draft, procedural provisions stay under Fema, while sect...