An NRE PIS (Non-Resident External - Portfolio Investment Scheme) account is a special type of bank account that allows NRIs (Non-Resident Indians) to invest in Indian stock markets using funds held in their NRE account. It operates under RBI's Portfolio Investment Scheme and supports repatriable equity investments, subject to applicable FEMA and RBI guidelines.
NRE PIS account and transaction flow
- You open an NRE savings account with a bank authorised for PIS transactions.
- The bank issues a PIS letter authorising your investment activity under RBI regulations.
- You submit this letter to FYERS during NRI account onboarding.
- Your bank then monitors and reports applicable buy and sell transactions under the PIS framework.
- You can buy shares listed on Indian stock exchanges using funds from your NRE account.
- Sale proceeds are credited back to your NRE account and can be repatriated abroad, subject to applicable FEMA and RBI guidelines.
This structure allows NRIs to invest in Indian equities while maintaining the applicable banking and regulatory framework for repatriable investments.
Key features and structure
- RBI-authorised: Governed by RBI's Portfolio Investment Scheme (PIS).
- Funding through NRE account: Funded through eligible foreign earnings remitted to an NRE account and eligible repatriated funds, subject to FEMA and RBI guidelines.
- Full repatriability: Eligible principal and gains can be sent abroad, subject to applicable regulations.
- Currency flexibility: Funds can be converted between INR and foreign currency through the applicable banking channel.
- Inter-account transfers: Transfers from NRE to NRO accounts are permitted, subject to applicable banking and regulatory requirements.
FYERS-supported PIS banking partners
FYERS currently supports NRE PIS onboarding through the following banking partners:
- HDFC Bank Ltd
- Axis Bank Ltd
- Federal Bank Ltd
- IDFC FIRST Bank Ltd
The role of the PIS letter
To activate NRE PIS trading, your bank must issue a PIS letter, which is a formal approval for participation in the scheme.
This letter:
- Confirms your eligibility under the PIS route.
- Enables bank-level monitoring and reporting under the applicable PIS framework.
- Segregates PIS trades from other transactions for applicable taxation and audit requirements.
Note: FYERS can assist with the PIS onboarding process through its supported banking partners, including HDFC Bank Ltd, Axis Bank Ltd, Federal Bank Ltd, and IDFC FIRST Bank Ltd.
To get started or request assistance with PIS documentation, visit the FYERS NRI onboarding page.
If you prefer a non-repatriable setup without a PIS letter, you can consider an NRO Non-PIS account instead of an NRE PIS account.
What if...
| Scenario | Solution |
|---|
| You want to trade on Indian exchanges using overseas funds | Open an NRE PIS account with the required PIS documentation through a supported banking partner. |
| You want a non-repatriable setup with fewer PIS formalities | Consider an NRO Non-PIS account. A PIS letter is not required. |
| You need help obtaining the PIS letter | FYERS can assist with the onboarding process through HDFC Bank, Axis Bank, Federal Bank, or IDFC FIRST Bank. |
| Your NRE account is with another bank | NRE PIS onboarding with FYERS is supported through HDFC Bank Ltd, Axis Bank Ltd, Federal Bank Ltd, and IDFC FIRST Bank Ltd. |
| You wish to transfer funds from NRE to NRO | Transfers are permitted, subject to applicable banking, FEMA, and RBI requirements. |
| You want to repatriate your investment proceeds | Eligible proceeds credited to the NRE account can be repatriated, subject to applicable FEMA and RBI guidelines. |
If your goal is to invest in India while maintaining the ability to repatriate eligible investment proceeds, an NRE PIS account provides the applicable route. For a non-repatriable setup without a PIS letter, you can consider an NRO Non-PIS account.