Features &
Facilities Available

Facilities Available To NRIs/PIO

Other facilities available to NRIs?

Other Investments on repatriation basis

  • Government dated securities/treasury bills
  • Units of domestic mutual funds
  • Bonds issued by a public sector undertaking (PSU) in India
  • Non-convertible debentures of a company incorporated in India
  • Shares in Public Sector Enterprises being disinvested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids
  • Shares and convertible debentures of Indian companies under FDI scheme (including automatic route & Foreign Investment Promotion Board (FIPB)
  • Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme
  • Perpetual debt instruments and debt capital instruments issued by banks in India

Other Investments on non-repatriation basis

  • Government dated securities (other than bearer securities)/treasury bills
  • Units of domestic mutual funds
  • Units of Money Market Mutual Funds in India
  • Non-convertible debentures of a company incorporated in India
  • The capital of a firm or proprietary concern in India, not engaged in any agricultural or plantation activity or real estate business
  • Deposits with a company registered under the Companies Act, 1956 including NBFC registered with RBI, or a body corporate created under an Act of Parliament or State Legislature, a proprietorship concern or a firm out of rupee funds which does not represent inward remittances or transfer from NRE/FCNR (B) Accounts into the NRO Account
  • Commercial Paper issued by an Indian company
  • Shares and convertible debentures of Indian company other than under Portfolio Investment scheme

Investment in immovable property.

  • May acquire immovable property in India other than agricultural land/ plantation property or a farmhouse out of repatriable and non-repatriable funds

What are the facilities available to returning NRIs/PIO?

Returning NRIs / PIO

  • May continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when the resident outside India
  • May open, hold and maintain with an authorized dealer in India a Resident Foreign Currency (RFC) account to transfer balances held in NRE/FCNR (B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment in any form outside India


Operations by Power of Attorney Holders

Can NRI give Power of Attorney to a resident to operate his account and for making investments on his behalf?

Yes, an NRI can appoint a resident as his Power of Attorney holder to make all his local payment in Rupees from his NRE / NRO accounts, including payments for eligible investments subject to compliance with relevant regulations made by Reserve Bank of India from time to time. A Power of Attorney holder can repatriate back the funds only to the NRI account holder.

What are the restrictions imposed on the Power of Attorney holder?

A Power of Attorney holder of NRI account cannot do the following acts

  • Open and close NRI accounts in the name of NRI
  • Repatriate funds from accounts in the form of Dem and draft /Telegraphic Transfer/etc
  • Make payment by way of gifts
  • Transfer funds to other NRE accounts
  • Cannot raise loans/execute documents on behalf of NRI
  • Cannot tender Foreign Currency/ Foreign Currency Traveller’s Cheques for credit of account

Nomination Facilities

Is nomination allowed in NRE accounts?

Yes, NRIs can nominate either a resident or a non-resident as a Nominee. However, only one nominee is permitted per account. The Nominee can also be a minor in which case, a guardian has to be appointed to receive payment on the minor's behalf.