According to Indian media, the decision was taken during a meeting of the BCCI's women's cricket committee.
As a result, Indian female players will be able to take part in tournaments such as the Women's Big Bash League in Australia and the Women's Super League in England.
The aspiring participants will, however, have to get their contracts approved by the BCCI.
Earlier, Indian cricketers, both men and women, had been disallowed from playing in any foreign league, unless they announces their international retirement. The rule still remains effective for men cricketers.