NRI Bank Account

Yes, as an NRI, you can open both an NRE (Non-Resident External) and an NRO (Non-Resident Ordinary) account. Many banks in India offer the option to open both types of accounts simultaneously.

The process and document requirements for both the accounts are the same.

Yes, an NRE (Non-Resident External) account can be converted to an NRO (Non-Resident Ordinary) account under certain circumstances. This usually happens when an NRI returns to India and changes their residential status to Resident but Not Ordinarily Resident (RNOR) or Resident.

Reasons for Conversion:

1. Change in Residential Status: When an NRI returns to India and becomes a resident as per Indian tax laws, the NRE account must be converted to an NRO account.
2. Regulatory Compliance: As per RBI guidelines, once the residential status changes, maintaining an NRE account is not permissible.

Yes, an NRE account can be opened online. NRIs can open NRE accounts online with SBI, Axis, HDFC Bank and more. You can check with your bank for the options provided for account opening.

Following are the NRE account opening requirements:

NRE account opening documents:

1. Valid proof of identity:
   • Copy of valid Passport.
   • PAN Card or Form 60 (in case PAN is unavailable).
   • Overseas Citizen of India card, Driving License, or Voter ID.
2. NRI-Status proof documents
   • Copy of Visa. For many countries in the Middle East, a work permit together with a residence card may be sufficient.
   • Work permit, or residence permit indicating the individual's NRI status.
   • Employment visa or residency permit issued by the government of the host country.
3. Valid proof of address:
   • Overseas address proof: utility bills, bank account statements, driving license, government-issued ID card, credit card bill, etc.
   • Indian address proof (if available and optional): Aadhar card, voter ID, driving license, bank statement, utility bill, etc.
4. Other details:
   • Passport size photograph.
   • Initial payment cheque/draft from NRI's foreign bank account for NRE/NRO account or Indian bank account for NRO account.
   • Application for PIS approval (required for stock market investments).

The documents should be attested either by the authorized officials of overseas branches of banks registered in India or notary public abroad or judge or Indian embassy.

NRI account online opening process

• Navigate to the official website of the bank of your choice and look for the page to open an NRE account.
• Register with basic details: Verify your email address and mobile number.
• Fill in personal information liker your name, date of birth, nationality and passport details.
• Enter your addresses in India and abroad.
• Select account type: Select NRE account.
• Upload required proof of identity and NRI status proof.
• KYC verification: Schedule a video call with a bank representative if this option is available.
• Make the initial deposit as required.
• Once all steps are completed, your NRE account will be activated and ready to use.

NRE account is a rupee-denominated account.

An NRE account cannot hold foreign currency but an NRI can transfer foreign currency to an NRE account that gets converted in Indian rupees and then deposited in the NRE account.

Yes, an NRE (Non-Resident External) account can be used to invest in mutual funds in India.

Investments in mutual funds do not require a PIS approval thus an NRI can use either NRE or NRO account for mutual fund investments. The key difference between usage of NRE and NRO accounts is that the funds in NRE account can be repatriated easily while funds in NRO account cannot be easily repatriated and is subject to restrictions.

NRIs can invest in mutual funds either by themselves or through a power of attorney where another person can invest on behalf of the NRI. Refer NRI Investment in Mutual Funds for more details.

An NRE (Non-Resident External) account is specifically designed for NRIs to manage their foreign income. Thus, NRE accounts are expected to receive only foreign currency which gets converted into Indian Rupees (INR) when deposited.

To receive money from India, there exist NRO accounts designed to manage income earned in India (such as income, rent, or local transfers). Till 2012, transfer from NRO to NRE account was not permitted. However, in May 2012, RBI permitted transfers from NRO to NRE subject to certain conditions.

An NRE account can be opened online or offline.

NRE account opening procedure:

1. Select a Bank that offers NRI banking services such as ICICI Direct, HDFC, Kotak Securities, etc.
2. Obtain the NRI account opening form from the bank’s website or branch.
3. Fill Out the Account Opening Form
4. Gather Required Documents: Personal Details, Identity Proof, Address Proof, and NRI-Status Proof documents.
5. Submit the Documents
6. KYC (Know Your Customer) Verification
7. Make an initial deposit to activate the account
8. Once the account is approved, receive the account details, cheque book, debit card, and Internet banking credentials.

In online account opening, the account opening form can be downloaded from the bank website and all information and documents can be submitted online. The KYC verification can also be performed virtually through video call.

An NRO bank account in India can be opened online or offline. You need to confirm with the bank providing NRI banking services for the online services.

The offline account opening would require physical presence of the NRI while online account opening can be done from anywhere.

Listed below are the generic steps to open NRO bank account:

1. Visit the official website of the bank where you want to open an NRO account.
2. Select the option to open an NRO account.
3. Enter your personal details and contact details of India and overseas.
4. Save the information to generate a Customer Reference Number (CRN) and make a note of it for future reference.
5. Verify your email address and mobile number, if required.
6. Upload the required documents.
7. Complete the KYC verification via video call.
8. Once the KYC verification is completed, you will receive an email with your account details.
9. Make the required initial deposit to activate your account.

Note: An NRI can also add a nominee to the account. As per regulations only one nominee per account is permitted. The nominee can be a resident or a non-resident.

NRE account stands for Non-Resident External account. It is an NRI bank account type designed to manage foreign income. NRO account stands for Non-Resident Ordinary account. It is an NRI bank account to manage income generated in India.

To know key differences between NRE and NRO, refer to NRE vs NRO.

Yes, you can open an NRO (Non-Resident Ordinary) account without having an NRE (Non-Resident External) account.

An NRI is mandatorily required to open an NRO account as soon as his status becomes NRI. An NRI cannot have a bank account in his name in India. Thus, an NRI is required to convert their existing bank accounts to NRO.

Yes, an NRO account can be linked to the demat account.

If an NRI intends to invest on non-repatriation basis, NRI can link their NRO bank account to demat account to invest in stock markets, mutual funds, IPO, rights issue, F&O etc.

The demat account linked with NRO account becomes NRI Non-Repatriable Demat account. The sell proceeds of stocks from the linked demat account or any corporate action benefits like dividend due on the shares held in such demat accounts get credited to the linked NRO bank account.

Yes, NRO accounts can be opened online with many of the known banks in India such as Axis, HDFC, ICICI, SBI and more.

In online account opening, NRI can download the form online from the website, upload the scanned copies of attested documents and complete the KYC verification through video call.

Yes, an NRO (Non-Resident Ordinary) account can be used for trading.

Earlier, investment in equity stocks through the secondary market without PIS approval was not permitted. Thus, only an NRO PIS account could be used for trading. Eventually, RBI relaxed the requirement of PIS for NRO route. Thus, now an NRO Non-PIS account can also be used for trading. However, still not all brokers offer the facility to trade using NRO account without PIS, hence confirm with your broker on the option provided.

NRI can also invest in mutual funds, F&O, NCD, IPO using the NRO account.

Yes, an NRO (Non-Resident Ordinary) account can receive money from abroad.

An NRI can deposit either foreign funds or Indian income in an NRO account. While there are no restrictions on the deposit, the repatriation is subject to certain limits and conditions set by the Reserve Bank of India (RBI). NRIs can repatriate up to USD 1 million per financial year from their NRO account, provided the relevant taxes have been paid.

Yes, an NRO (Non-Resident Ordinary) account can receive money from India. The income NRO account can receive:

• Income Earned in India: This includes income such as rent, dividends, pension, interest, and any other income earned in India.
• Payments from Resident Indians: Resident Indians can transfer funds to an NRO account for various purposes, such as payment for services, sale proceeds, and gifts.

Yes, an NRO (Non-Resident Ordinary) account can send money abroad, but there are specific rules and documentation requirements. Here are the main points:

1. Annual transfer limit: An NRI may transfer up to USD 1 million per financial year from the balance in the NRO account.
2. Source of funds: The source of funds in the NRO account determines the amount that can be transferred. The funds generally include income earned in India such as rents, dividends, pensions and interest.
3. Authorizations required: Transfers from an NRO account need to be approved by the Reserve Bank of India (RBI).
4. Documentation:
1. Form 15CA and 15CB: These forms are required for the remittance process. Form 15CA is a declaration of remittance and Form 15CB is a certificate from a chartered accountant certifying the tax compliance of the funds remitted.
2. Bank Forms: Special forms provided by the bank to process the transfer.
3. Source of Funds Proof: Documents showing the origin of funds in the NRO account (e.g. rental agreements, dividend statements, etc.).
5. Passport and visa: copies to verify identity.
6. Tax returns: Current Indian income tax returns may be required to ensure tax compliance.
7. Ensure that all applicable taxes on the funds have been paid or deducted at source.

If you comply with these rules and provide the required documents, NRIs can remit money abroad from their NRO accounts within the specified limits.

The NRO account is mainly used for:

1. Receiving income earned in India such as rental income, income from property or dividends from investments.
2. Paying expenses: The account can be used to pay for expenses in India, such as utility bills, EMIs, or family maintenance.
3. Investments: NRIs can use the NRO account to invest in Indian stock markets, mutual funds, F&O and much more.

Key Features of NRO Account:

• The account operates in Indian Rupees (INR).
• Funds can be deposited in Indian or foreign currency (converted to Indian rupees at the time of deposit).
• Withdrawals from the NRO account are allowed only in Indian Rupees.
• Repatriation of funds from the NRO account is subject to certain limits and conditions. NRIs can remit up to USD 1 million per financial year after providing necessary documentation and obtaining approvals from the Reserve Bank of India (RBI).

NRO Account for Trading Purposes

An NRO account can be used for trading purposes in India under the Portfolio Investment Scheme (PIS) of the Reserve Bank of India (RBI). Here are the key points:

• Trading in Indian Markets:: NRIs can use NRO accounts to trade in Indian stock markets. This includes buying and selling stocks, mutual funds, bonds, and other securities.
• Compliance with PIS: NRIs need to register with a designated bank for Portfolio Investment Scheme (PIS) to invest in the Indian stock market. Transactions under PIS are reported to the RBI.
• Taxation: Capital gains arising from these trades are subject to tax in India. Short-term and long-term capital gains tax rates will apply depending on the holding period of the securities.
• Repatriation: Funds from the sale of securities can be repatriated abroad, subject to the overall limit of USD 1 million per financial year after tax compliance.
• Separate Demat Account: A separate Demat account linked to the NRO account is required for trading purposes. This ensures that the funds used for trading and the investments made are properly tracked and compliant with regulatory requirements.

An NRO (Non-Resident Ordinary) account is a bank account in India for Non-Resident Indians (NRIs) to manage their income earned in India. This account is designed to allow NRIs to deposit and manage their Indian earnings such as rent, dividends, pensions, and other incomes earned in India.

Key Features of NRO Account

• NRIs can deposit their Indian income sources such as rent, dividends, and pension into this account.
• Funds in an NRO account can be repatriated outside India, subject to certain limits and conditions. The current limit is up to USD 1 million per financial year, after payment of applicable taxes.
• An NRO account can be held jointly with another NRI or even with a resident Indian.
• Interest earned on NRO accounts is subject to tax in India. The applicable rate of Tax Deducted at Source (TDS) on interest income is 30% (plus applicable surcharge and cess).
• The NRO account is maintained in Indian Rupees (INR).
• NRO accounts can be in the form of savings accounts, current accounts, recurring deposit accounts, or fixed deposit accounts.
• NRIs can also transfer funds from NRE account to NRO account or deposit foreign funds in NRO account.

An NRO PIS (Portfolio Investment Scheme) account is a special type of bank account for Non-Resident Indians (NRIs) that allows them to invest in the Indian stock market. Under the Portfolio Investment Scheme of the Reserve Bank of India (RBI), NRIs can buy and sell shares and convertible debentures of Indian companies on recognized stock exchanges in India.

Key Features of NRO PIS Account

• Enables NRIs to invest in Indian stock exchanges (both primary and secondary markets).
• Funds from the sale of shares can be repatriated abroad after paying applicable taxes. The overall limit for repatriation from an NRO account is USD 1 million per financial year.
• All transactions under the PIS need to be reported to the RBI by the designated bank. This ensures regulatory compliance.
• Earnings from investments are subject to Indian taxes. TDS (Tax Deducted at Source) is applicable on capital gains.
• A separate NRO PIS account is required for routing the investments. This account helps in clear tracking and reporting of investments and earnings.

Process of Opening an NRO PIS Account

• Select a bank authorized by the RBI to offer PIS services.
• Fill in the application form provided by the bank for opening an NRO PIS account.
• Submit necessary KYC documents such as passport, visa, proof of address, and PAN card.
• The bank will obtain the PIS permission from the RBI on behalf of the NRI.
• Link the NRO PIS account with a trading and Demat account for executing trades.

Benefits of NRO PIS Account

• Investments are regulated and compliant with the guidelines set by RBI and SEBI (Securities and Exchange Board of India).
• Provides a convenient way for NRIs to invest in Indian equities and convertible debentures.
• Ensures proper tracking and reporting of investments and earnings, simplifying compliance with tax regulations.
• Allows for repatriation of investment proceeds after tax deductions.

Note: The requirement of PIS through NRO route is now relaxed by RBI and is not mandatory for trading Indian equity stocks. NRI can trade using their normal NRO accounts provided their broker offers the said facility.

The following individuals are eligible to open an NRE account

1. Non-Resident Indians (NRIs) - (Indian citizens working abroad, business people residing overseas, students studying in foreign countries).
2. Person of Indian Origin (PIO) - An individual who is not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan and who:
   • At any time held an Indian passport, or
   • Whose parents or grandparents were citizens of India by the Constitution of India or the Citizenship Act, of 1955, or
   • Is a spouse of an Indian citizen or a person referred to in the above clauses.
3. Overseas Citizen of India (OCI) - Foreign nationals of Indian origin who have obtained OCI status from the Government of India.

NRI investors can choose to open an NRO account either online or offline. The NRO account can be PIS enabled or investors can choose to make it a non-PIS account. Investors first need to download the application document from the bank’s website.

1. Completed application form signed and attested by your banker/Embassy of India/public notary or any person known to the bank and must be accompanied by:
2. Copy of passport, along with photocopies of address proof, expiry date of passport, etc.
3. Copy of Visa. For many countries in the Middle East, a work permit may be sufficient, along with a residence card.
4. One passport photograph of each applicant.
5. For mailing addresses, the following proofs may be acceptable.
   • Photocopy of Valid Passport stating the overseas address
   • Photocopy of Utility Bill
   • Photocopy of Overseas Bank Statement
   • Photocopy of Valid Driving License
   • Photocopy of Government issued ID Card
   • Photocopy of Credit Card bill
6. In case an individual cannot come to a branch for the opening of the account then, all photocopies of the above documents need to be attested by an Indian Embassy or Notary or by a Banker overseas.
7. NRI proof document like – valid work permit/visa
8. Valid proof of identity: PAN card, driver's license, passport, voter ID, etc.
9. Valid proof of address: utility bills, bank account statement, rental agreement, etc.
10. NRI status proof: employment visa or residency permit issued by the government of the host country.
11. Contact information and details of the applicant’s bank account.
12. Pan Card (It is mandatory irrespective of residential status.)
13. Identity Proof (PAN card, Driving license, Voter card, Overseas Citizen of India card).
14. Overseas Address Proof. (Driving License, Bank Statement, Lease/Rent Agreement. Utility Bill)
15. Indian Address Proof (Optional for OCI/PIO). (Aadhar Card/Voter ID/Driving License/Bank Statement/Utility bill)
16. Photograph as per Account Opening Form requirement.
17. In case the investor does not visit the branch (Non-Face-to-Face Case) to open these accounts then all photocopies should be attested by the customer himself and to be attested by the Indian Embassy or by Notary or By Banker Overseas. (This will apply to all the documents)
18. The account opening form and the above documents are mandatory to open PIS, Trading, and Demat Accounts.
19. In the case of a Foreign Passport, it needs to be accompanied by an OCI/PIO Card with a matching passport number.
20. PIS permission letter from the bank (issued by RBI).

NRI investors have a lot of options to invest in India. These include:

• Derivatives, Futures & Options
• Bonds
• Stocks i.e. equity shares investment
• Mutual Funds.

Investments for NRIs are almost the same as residents subject to norms.

All non-resident Indians are eligible for NRI account creation. This is subject to the norms as mentioned by the authorities and changes as suggested by them. The following criteria have to be met:

• An individual who is employed or owns a business or practices some form of business outside India for more than 182 days
• Indian government employees who hold diplomatic passports
• Students studying abroad
• Seafarers
• Indian employees of an oil rig situated in a foreign country staying outside India for more than 182 days

The documents for opening an NRI trading account and a demat account are the same. The most important documents that NRI investors should have ready for opening a trading account are:

• The PIS Permission Letter from the respective designated bank for trading on a repatriation
• The PIS FEMA NRE/NRO bank accounts cancelled the cheque.
• PAN Card.
• Overseas Address Proof - Driving License/ Foreign passport /Utility Bills/Bank statement (not more than 2 months old)/Notarized copy of rent agreement/ leave & license agreement/ Sale deed.
• Photograph of Investor.
• Proof of respective bank accounts & depository accounts.
• Account opening fee check + Demat Account Opening Fee check.
• Duly signed account opening forms.

NRI investors must additionally keep the following important considerations in mind: