- Who Is Considered an NRI?
- Why Should NRIs Consider Investing in India?
- Regulations That Apply to NRI Investors
- Bank Accounts Required for NRI Investing (NRE vs NRO)
- PIS vs Non-PIS: When Is It Required?
- Products Available for NRIs on INDmoney
- Limitations for US & Canada-based NRIs
- Documents Required for NRI KYC
- How NRIs Can Invest Through INDmoney: Step-by-Step
- Final Thoughts
For many NRIs, investing in India is both an emotional and strategic decision. You may be earning abroad, planning your future outside India, or looking to benefit from India’s fast-growing economy. Many also prefer to diversify across currencies, maintain a financial footprint in India, or build assets for goals like retirement, property or eventual relocation.
But the moment your residency status changes, so do the rules around KYC, banking, documentation, taxation and even which investment products are allowed. The good news is that once the structure is understood, investing as an NRI becomes smooth and gives you access to a wide range of opportunities. Platforms like INDmoney have further removed a lot of friction by simplifying the onboarding and compliance process.
This blog breaks down everything an NRI needs to invest in India in 2025, including accounts, regulations, asset classes, tax rules and repatriation.
Who Is Considered an NRI?
You are classified as an NRI (Non-Resident Indian) if you satisfy both of the following conditions:
- You are an Indian citizen living outside India (or you have Indian citizenship but are resident abroad), and
- You stay outside India for more than 182 days in a financial year for purposes of employment, business, studies or other intent to stay abroad.
Once you meet this criteria, your banking, taxation and investment rules fall under FEMA (Foreign Exchange Management Act).
Why Should NRIs Consider Investing in India?
High-growth economy
India continues to be one of the fastest-growing major economies. Rising consumption, strong corporate earnings and a broadening equity culture make Indian markets attractive for long-term wealth building.
Strong equity & mutual fund ecosystem
NRIs get access to:
- Deep, liquid equity markets
- Over 1,500 mutual fund schemes
- Equity, debt, hybrid, index funds, ELSS
- A mature SIP culture that encourages disciplined investing
Currency & geographic diversification
If you earn in USD, AED, GBP, SGD or other foreign currencies, investing in India allows you to:
- Diversify across currencies
- Maintain a financial presence in India
- Plan long-term goals like retirement, future expenses, property or relocation
Tax benefits for NRIs
- Long-term capital gains (LTCG) on equity shares and equity-oriented mutual funds (held >1 year) are taxed at 12.5% on gains exceeding ₹1.25 lakh per financial year.
- DTAA treaties help NRIs avoid double taxation. In most cases, you can claim tax credit in your country of residence for taxes paid in India, subject to treaty conditions and documentation.
Regulations That Apply to NRI Investors
| Regulator / Rule | What It Covers | Explanation for NRIs |
| FEMA (Foreign Exchange Law) | Overall rules for NRI investments & money movement | FEMA decides what NRIs can and cannot invest in, and how money can be sent into or out of India. |
| RBI (Central Bank) | NRE/NRO/FCNR accounts, repatriation rules, investment permissions | RBI sets rules for opening NRI bank accounts, limits on sending money abroad, and allowed investment routes. |
| SEBI (Market Regulator) | Mutual funds, stocks, brokers, KYC | SEBI controls how NRIs can invest in shares and mutual funds, and ensures proper KYC is followed. |
| FATCA / CRS (Global Tax Rules) | Reporting of overseas accounts | NRIs in the U.S./Canada or CRS countries must provide extra tax documents; some Indian mutual funds may not accept U.S./Canada NRIs. |
Bank Accounts Required for NRI Investing (NRE vs NRO)
Once you become an NRI, you cannot invest using your resident savings account. You need to convert your savings bank account to NRO or open a new NRE account.
To invest in India, you must use:
- NRO Account (Non-Resident Ordinary)
- NRE Account (Non-Resident External)
Both accounts are INR-denominated, but they serve different purposes.
NRE Account: For Foreign Income
Key features:
- Funded only with foreign income
- Completely repatriable
- Interest is tax-free in India
Usage:
- Investment into mutual funds
- Equity delivery via PIS route, where repatriation is required
For whom: NRIs wanting to invest foreign earnings into India and keep the flexibility to move funds abroad.
NRO Account: For Indian Income
Key features:
- Used for income generated within India (rent, dividends, pension)
- Repatriation allowed up to USD 1 million/year with documentation
- Interest is taxable
Usage:
- Most common account for stock investments
- Used for delivery-based trades and F&O through a non-PIS route
For whom: NRIs earning income in India or wanting to invest actively in equities and F&O.
PIS vs Non-PIS: When Is It Required?
A PIS (Portfolio Investment Scheme) is an RBI-regulated framework that allows NRIs to buy/sell stocks using NRE funds on a repatriable basis.
- It requires a separate PIS bank account linked to your NRE (and sometimes NRO) account.
- Every trade done through this account is reported to the RBI.
Why does RBI require PIS?
- To monitor foreign ownership
- Ensure no NRI holds more than 5% of a company
- Ensure sector-wise foreign investment caps are not breached
When do you need a PIS account?
PIS is required only for repatriable stock delivery trades using an NRE account.
Required for:
- Buying/selling stocks via NRE (repatriable route)
Not required for:
- Mutual Funds (NRE or NRO)
- Stocks via NRO Non-PIS (most common route today)
- F&O trading (only allowed via NRO Non-PIS)
Although NRO can technically be linked to PIS, it provides no advantage over NRO Non-PIS and is rarely used.
Products Available for NRIs on INDmoney
NRIs can invest in a wide range of products:
- Indian Mutual Funds: via both NRO non-PIS and NRE account
- Indian Stocks (Equity & ETFs): via NRO non-PIS
- Futures & Options: allowed via NRO non-PIS
- US Stocks: coming soon for select countries
Limitations for US & Canada-based NRIs
Due to FATCA and other global reporting rules:
- Many Indian AMCs do not accept US/Canada-based NRIs
- Some require offline forms, physical declarations and additional compliance
- Mutual fund universe is therefore smaller
On INDmoney, the app automatically displays only the schemes allowed for your country of residence after completing your NRI KYC.
Documents Required for NRI KYC
You will need:
- Valid passport (front & back)
- Foreign address proof (utility bill, driver’s licence, bank statement, residence card), must show full name and full address
- NRE/NRO bank proof: must clearly mention account type (NRE/NRO)
How NRIs Can Invest Through INDmoney: Step-by-Step
- Register using Indian or foreign mobile number
- Enter basic info: name, email, PAN
- Select NRI as residential status
- Enter personal details, add nominee (optional), and fill professional info (education, occupation, income range)
- Select NRI bank type:
- NRO → Stocks (delivery & F&O) + MF
- NRE → Mutual Funds only
- Fill FATCA details: tax residency + TIN
- Upload documents: passport, foreign address proof, NRE/NRO bank proof
- Complete Video KYC: show face, passport and address proof
- After approval:
- If in India: Complete process 100% digitally via Aadhaar e-Sign
- If in UAE: Download, sign & upload AOF → free doorstep pickup (no courier needed)
- If in other countries: Download, sign & upload AOF → courier to India
Final Thoughts
For NRIs in 2025, investing in India is more accessible than ever as long as you understand the NRE/NRO structure, regulatory rules, and product eligibility. With streamlined KYC, automatic filtering of eligible funds, and conveniences like free UAE doorstep document pickup, platforms like INDmoney have simplified the entire process.
Whether your goal is long-term wealth creation through mutual funds or active equity exposure, following the right account setup and staying compliant with FEMA and tax rules ensures a smooth and rewarding investing journey.
Disclaimer:
Investment in the securities market is subject to market risks, read all the related documents carefully before investing. INDmoney Global (IFSC) Private Limited, Office No. 507, 5th Floor, Pragya II, Block 15-C1, Zone-1, Road No. 11, Processing Area, GIFT SEZ, GIFT City, Gandhinagar – 382355 IFSCA Broker Dealer Registration No. IFSC/BD/2023-24/0016, IFSCA DP Reg. No.: IFSC/DP/2023-24/010. Global Access is offered in tie-up with US SEC registered broker dealer. Relevant SEC and FINRA fees apply. Please be informed that US stocks are not Exchange traded funds and all disputes related to US stocks services will not have access to the Rights of investors or investor protection; Dispute resolution mechanism; and Investor grievance redressal mechanism of the recognised stock exchanges in the IFSC or in India. INDmoney Global will not incur personal financial liability in relation to or arising from any claims, disputes or issues pertaining to remittance, and/or other banking facilities.