NRI FAQs

An NRI (Non-Resident Indian) is an Indian citizen or a person of Indian origin who is classified as a non-resident in India for a particular financial year under the provisions of Section 6 of the Income-tax Act, 1961.

For income tax purposes, an individual is generally considered an NRI if he/she does not satisfy the conditions for being treated as a resident in India, which are primarily based on the number of days stayed in India during the relevant financial year and preceding years.

Residential status is determined separately for each financial year and may change from year to year depending on the individual’s period of stay in India.

Any NRI/PIO can open two types of savings accounts with any bank in India. They are NRE and NRO bank accounts.

An NRE (Non-Resident External) Account is a bank account that allows NRIs to hold and manage their foreign earnings in India in Indian Rupees. The funds and interest are generally fully repatriable, and the interest earned is tax-exempt in India for eligible NRIs.

An NRO (Non-Resident Ordinary) Account is a bank account that allows NRIs to manage income earned in India, such as rent, dividends, pension, or interest. The interest earned on an NRO account is taxable in India, and repatriation is subject to applicable RBI and tax regulations.

Yes. Funds can be freely transferred from an NRE account to an NRO account.

Yes. Funds can be transferred from an NRO account to an NRE account, subject to compliance with applicable RBI regulations and tax requirements, including submission of the prescribed documentation like CA certificate and remittance forms.

Yes. NRIs are permitted to invest in shares, debentures, bonds, and units of mutual funds in India, subject to the applicable FEMA and RBI regulations. Investments may be made on both repatriation and non-repatriation basis.