Who is an NRI?

An NRI, or Non-Resident Indian, encompasses two categories:
1. Indian citizens who reside outside India for employment, business, or a vocation with an intention to remain abroad for an indefinite duration.
2. Indian citizens temporarily sent abroad for employment purposes.

Who is a PIO(Person of Indian Origin)?

A person is considered a PIO (Person of Indian Origin) if they are a citizen of a foreign country (excluding Bangladesh and Pakistan) under the following circumstances:
1. They previously held an Indian Passport at any point in time.
2. They, their parents, or any of their grandparents were citizens of India.
3. They are the spouse of an Indian citizen who meets the criteria mentioned in (a) or (b) above, and they themselves are not citizens of Bangladesh or Pakistan.

What type of saving bank account(s) can be opened by an NRI or PIO in India?

Any Non-Resident Indian (NRI) or Person of Indian Origin (PIO) has the option to open two types of savings accounts with any Indian bank: NRE (Non-Resident External) and NRO (Non-Resident Ordinary) bank accounts.

What is a NRE account?

An NRE (Non-Resident External) bank account is a savings account designed for Non-Resident Indians (NRIs). It’s termed “External” because the funds held in this account can be freely taken out of the country. In other words, the money in an NRE account is fully repatriable, meaning it can be converted into any foreign currency as desired by the account holder and sent abroad.

What is a NRO account?

A NRO (Non-Resident Ordinary) bank account is a standard savings account available to Non-Resident Indians. It’s referred to as “Ordinary” because, unlike the NRE account, the funds in an NRO account cannot be freely taken out of the country. In other words, the money in an NRO account is not readily repatriable unless the account holder obtains certification from a Chartered Accountant.

Can money be transferred from NRE account to NRO account?

Indeed, funds from an NRE account can be transferred to an NRO account without restrictions.

Can money be transferred from NRO account to NRE account?

Transferring funds from an NRO account to an NRE account is not allowed.

Can NRIs invest in shares, debentures and units of Mutual Funds in India?

NRIs are authorized to engage in direct investments in the shares and debentures of Indian companies, as well as units of mutual funds. They are also allowed to conduct portfolio investments, which involve purchasing shares and debentures of Indian companies through stock exchanges. These investment opportunities are available for both repatriation and non-repatriation purposes.

Where can an NRI/PIO open a demat account?

As previously explained, NRIs and PIOs are required to establish a demat account with a Non-Banking Financial Company (NBFC).