What is an NRE PIS account and how does it work?

What is an NRE PIS account and how does it work?

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 their foreign earnings. It operates under RBI's Portfolio Investment Scheme and supports fully repatriable equity investments.

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 every buy/sell transaction to the RBI on your behalf.
  • 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 freely repatriated abroad.

This structure allows NRIs to invest in Indian equities while retaining full control over fund movement and RBI compliance.

Key features and structure

  • RBI-authorised: Governed by RBI’s Portfolio Investment Scheme (PIS)
  • Foreign earnings only: Funded through income remitted to an NRE account
  • Full repatriability: Principal and gains can be sent abroad freely
  • Currency flexibility: INR-to-foreign conversion is seamless
  • Inter-account transfers: Transfers to NRO accounts are permitted for flexibility

The role of the PIS letter

To activate NRE PIS trading, your bank must issue a PIS letter—a formal approval for participation in the scheme.

This letter:

  • Confirms your eligibility under the PIS route
  • Enables bank-level monitoring and reporting to RBI
  • Segregates PIS trades from other transactions for taxation and audits

FYERS can assist in obtaining this letter from its partner banks (e.g., HDFC Bank, Yes Bank) during your onboarding process.

To get started or request help with PIS documentation, visit our NRI onboarding page.

If you prefer a simpler setup without RBI reporting requirements, consider opening an NRO Non-PIS account instead of an NRE PIS account.

What If...

ScenarioWhat you should know
You want to trade on Indian exchanges using overseas fundsOpen an NRE PIS account with a PIS letter from your bank
You want a non-repatriable setup with fewer formalitiesChoose an NRO Non-PIS account—no PIS letter required
You need help obtaining the PIS letterFYERS can coordinate the request with its banking partners
You wish to transfer funds between NRE and NROTransfers are allowed to help manage investments across both accounts

If your goal is to invest in India while maintaining the ability to repatriate profits, an NRE PIS account is the appropriate route. For simplified access, especially for domestic usage, consider the NRO Non-PIS alternative.

Last updated: 07 Aug 2025