How RBI monitors the investment positions of the NRIs?

All transactions from NRI PIS Bank Account are reported to RBI daily by the bank.

RBI also keeps track of the investment position of NRIs reported by designated bank in the listed companies daily. When this limit touches 2% below the sectoral cap for NRIs, the RBI issues a caution list to the designated bank mentioning that the further purchase in this company will need prior notice from RBI.

When the investment limit touches the sectoral limit, RBI places the company on the ban list. No NRI can invest in such companies that are placed on the ban list.