NRI Corner

Who is a Non-Resident Indian (NRI)?

An NRI is an Indian citizen or a person of Indian origin who resides outside India for employment, business, or any other purpose indicating an indefinite stay abroad.

Who is a Person of Indian Origin (PIO)?

A PIO is a foreign citizen (except citizens of Pakistan or Bangladesh) who:

• held an Indian passport at any time, or
• has parents or grandparents who were Indian citizens, or
• 30 Days free trial features
• is a spouse of an Indian citizen or a person mentioned above.

Related terms: Overseas Indian, Indian Expatriate — often used to refer to people of Indian descent living abroad.

According to the Ministry of Overseas Indian Affairs, India has the second-largest diaspora globally, after Overseas Chinese. The overseas Indian community is over 25 million strong, spread across every major region in the world.

Who is a Foreign Institutional Investor (FII)?

A Foreign Institutional Investor is an institution established outside India that invests in Indian securities and is registered with SEBI.

What is an Overseas Corporate Body (OCB)?

An OCB refers to companies, partnerships, societies, or other entities abroad, predominantly owned by non-resident individuals of Indian origin.

Can NRIs have bank accounts in India?

Yes. NRIs can open and maintain bank accounts in both Indian Rupees and foreign currencies.

What types of Rupee accounts can NRIs maintain?

NRIs can maintain the following types of Rupee accounts:

• Non-Resident (External) Rupee Account (NRE)
• Non-Resident (Ordinary) Rupee Account (NRO)
• Non-Resident (Special) Rupee Account (NRSR)
• Non-Resident (Non-Repatriable) Rupee Deposit Account (NRNR)

What are NRE, NRO, and FCNR Accounts?

• NRE (Non-Resident External) Account A Rupee-denominated account where both principal and interest are fully repatriable. Can be funded through remittances from abroad or local funds eligible for repatriation.
• NRO (Non-Resident Ordinary) Account Also Rupee-denominated, this account is used to manage income earned in India. Funds are generally non-repatriable, but certain remittances may be permitted under specific guidelines.
• FCNR (Foreign Currency Non-Resident) Account Held in designated foreign currencies (USD, GBP, EUR, JPY), FCNR accounts are term deposit accounts with durations from 6 months to 3 years. Both principal and interest are repatriable.

Key Differences: NRE vs. NRO vs. NRSR

• NRE Account: Funds are fully repatriable; ideal for saving income earned abroad.
• NRO Account: Primarily for managing Indian income; repatriation is restricted and conditional.
• NRSR Account: Meant for NRIs with no intention of repatriating funds; strictly used for local rupee payments.