Investment
NRE, NRO and FCNR accounts, shares and mutual funds, bonds and NPS, and sending money home.
Your three kinds of account
| Account | Held in | Money from | Can be taken abroad | Interest in India |
|---|---|---|---|---|
| NRE | Rupees | Abroad | Fully | Tax-free |
| NRO | Rupees | India: rent, pension, dividends | Up to USD 1 million a financial year, after tax | Taxed |
| FCNR (B) | Foreign currency | Abroad | Fully | Tax-free |
- Shares: NRIs trade on Indian exchanges through NRE or NRO accounts, with a demat and trading account marked for NRIs (PIS for trading on the repatriable side).
- Mutual funds: most fund houses accept NRIs; some do not take investors living in the United States or Canada.
- Bonds and pension: government securities through RBI Retail Direct, and the National Pension System.
- GIFT City: banks and funds in India's international financial centre offer dollar deposits and funds.