NRI Corner
NRI Corner
Who is a Non-Resident Indian (NRI)?
Who is a Person of Indian Origin (PIO)?
Other terms with vaguely the same meaning are overseas Indian and expatriate Indian. In common usage, this often includes Indian-born individuals (and also people of other nations with Indian ancestry) who have taken the citizenship of other countries.
According to Ministry of Overseas Indian Affairs, India has the second largest diaspora in the world after Overseas Chinese . The overseas Indian community estimated at over 25 million is spread across every major region in the world.
Can an NRI maintain a bank account in India?
Alternative Investment Funds (AIFs)
Alternative Investment Funds (AIFs) are privately pooled investment vehicles that invest in non-traditional asset classes like private equity, venture capital, hedge funds, real estate, and commodities. They are regulated by SEBI and cater primarily to high-net-worth individuals and institutional investors.
AIFs in India are classified into three categories:
Category I AIFs: Invest in startups, SMEs, social ventures, and infrastructure projects that have a positive economic or social impact.
Category II AIFs: Include private equity funds and debt funds that do not use leverage beyond day-to-day operations.
Category III AIFs: Engage in complex trading strategies, including hedge funds and long-short funds, aiming for high returns.
What types of rupee accounts may NRIs maintain?
There are 3 types:
1. Non-resident (External) Rupee Accounts (NRE)
2. Non-Resident (Special) Rupee (NRSR) Account
3. Ordinary Non-resident Rupee Accounts (NRO)
What are NRE, NRO and FCNR accounts?
Non-Resident (External) Rupee (NRE). This is a Rupee account from which funds are freely repatriable. It can be opened with either funds remitted from abroad or local funds which can be remitted abroad.
Non-Resident Ordinary Rupee (NRO). This is a Rupee account and can be opened with funds either remitted from abroad or generated in India. These funds are non-repatriable. However, under certain circumstances, these are allowed to be repatriated.
GIFT City
For investors, GIFT City provides opportunities to trade in foreign currency-denominated securities, derivatives, mutual funds, ETFs, and government securities in Indian markets. Additionally, it offers tax advantages for non-residents investing in certain financial instruments.
