NRE vs NRO Accounts: Understanding the Differences for NRI Banking

What is an NRO Non-PIS account?

An NRO Non-Portfolio Investment Scheme (Non-PIS) account is a type of investment account that enables Non-Resident Indians (NRIs) to purchase and hold various Indian securities like equity shares, convertible debentures, preference shares, bonds, and warrants on a non-repatriation basis. Investments made through this account are treated as domestic investments within India.

The Non-PIS account comes with a host of benefits, such as:
  • No PIS Letter Required: Eliminates the need for a Portfolio Investment Scheme (PIS) letter for transactions.
  • No Regulatory Interventions: Transactions are simpler without direct involvement from regulatory authorities.
  • No Investment Cap: Unlike PIS accounts, there is no upper limit on investment amounts.
  • Flexible Bank Mapping: Any registered Indian bank can be linked to this account, not limited to our partners like Yes Bank & HDFC Bank.
  • Unrestricted Mutual Fund Investments: NRIs can invest in mutual funds across Asset Management Companies in India (except for tax residents of the USA and Canada).
Important considerations for NRIs holding a Non-PIS account:
  • Equity F&O: NRIs can trade in Equity F&O with FYERS (Refer to this article).
  • Restrictions: Trading in Currency and Commodity segments is not permitted as per regulations.
  • Equity Intraday Trading: Not allowed under the current regulatory framework.
  • BTST Trades: As per regulations, Buy Today Sell Tomorrow (BTST) transactions are not permitted.
Begin the process of opening your NRI account by submitting your details here.