Can NRIs open both NRE and NRO trading accounts?

Can NRIs open both NRE and NRO trading accounts?

Yes, Non-Resident Indians (NRIs) can open two distinct trading accounts—one linked to an NRE (Non-Resident External) account and another to an NRO (Non-Resident Ordinary) account. Each account serves a different purpose and is governed by its own regulatory framework.

Key differences between NRE and NRO trading accounts

FeatureNRE trading accountNRO trading account
Source of fundsForeign incomeIndian income
RepatriabilityFully repatriable (Principal + Interest)Principal repatriable up to USD 1 million per year; Interest fully repatriable
TaxationInterest earned is tax-free in IndiaInterest and capital gains are taxable in India
Segment accessEquity Delivery only (via PIS)Equity Delivery and F&O (via Non-PIS)
Bank setupRequires PIS letter from RBI-designated bankNo PIS letter needed
To explore further details regarding the opening and management of these accounts, please refer to our comprehensive guide.

What if...

ScenarioWhat you should know
You already have an NRE trading accountYou can still open a separate NRO trading account with FYERS
You want to trade F&OYou must use an NRO Non-PIS account with CP setup
You want full repatriation of profitsUse your NRE account for equity delivery investments only
To simplify fund and compliance management, we recommend opening the NRO Non-PIS account for broader access, including F&O trading.
Last updated: 25 Jun 2025
    • Related Articles

    • Can an NRI link both NRE and NRO accounts to a single trading account?

      While NRIs can open both NRE and NRO accounts with any Reserve Bank of India (RBI)-approved bank, when it comes to linking these with a trading account at FYERS, only one account can be linked at a time. Account linking rules at FYERS You must choose ...
    • What types of bank accounts are available for NRIs to open?

      Under the Foreign Exchange Management Act (FEMA), NRIs are not allowed to maintain regular resident savings accounts in India. Instead, they must open designated NRI accounts — NRE (Non-Resident External) or NRO (Non-Resident Ordinary) — based on the ...
    • Can NRIs open an account with FYERS using NRO account?

      Absolutely, NRIs can link their NRO (Non-Resident Ordinary) bank accounts to their FYERS accounts for trading. Opening an NRI Account: For detailed instructions and guidance on setting up an NRI account with FYERS, you can read the specific article ...
    • Can NRIs open an account with FYERS?

      Yes, Non-Resident Indians (NRIs) can open an account with FYERS through a simplified onboarding process that complies with FEMA and SEBI regulations. FYERS supports NRO Non-PIS accounts, allowing NRIs to trade in the Indian equity market using their ...
    • What are the differences between an NRE and an NRO account?

      Non-Resident Indians (NRIs) can choose between two bank account types in India—Non-Resident External (NRE) and Non-Resident Ordinary (NRO). Each account serves a distinct financial purpose based on the source of funds and repatriation needs. ...