Superb Plans of NRI

Investment
Before investing, non-residents of India
should have Indian account. Lets have a
look over the accounts facilitated for them:

Non-Resident External Rupee

Account (NRE)
Earning via Indian origin is
transferable freely
USD 1 million is its limit
Repatriation requires CA certification
Foreign funds can be deposited
Interest is taxable
Prime function is to manage earning
in India

Non-Resident Ordinary Rupee

Account (NRO)
Convert foreign currency into INR
Conversion rate is given as per
prevalent price
Interest and Principal amount can be
repatriated
Fixed, savings and recurring a/c can be
opened

Foreign Currency Non-Resident

Bank Deposits (FCNR)

Foreign currency can be deposited

Fixed rate of exchanging currency
Can be opened as joint a/c
Maturity period: min. 1 yr & max. 5 yr
Tax free deposition

NRI Fixed Income

Investment Opportunities

National Pension Scheme

Its the contributory pension scheme.
Regulated by PFRDA (Pension Fund Regulatory and
Development Authority)
Valid age-group lies between 18 years to 60 years
Individual account
Joint account not permitted
Online banking facility
Citizenship of India is essential

National Pension Scheme

Continue.
Giving-up citizenship compels for closure of this
a/c
Flexibility in investment options
Lost cost investment
Tax benefits under Section 80C
Investment limit for 1 yr: Min.=INR 500; Max.=INR
6,000

Fixed Deposit

Must have NRE a/c or FCNR a/c or NRO a/c

Interest rate varies
Interest on deposit is tax free
Interest earned on NRO investment is
repatriated
Taxable investment

Certificates of Deposit (CDs)

Non-negotiable model
Maturity period is not less than 7 days and more
than 1 year
It is mandatorily repatriated
Rate on return is higher than FD

Bonds

Long-term investment
These are redeemable.
Fixed rate of interest
Tier-1 capitals banks are issuer
Lock principal amount for some time

Mutual Funds

Can be equity as well as debt mutual funds

Debt funds is fixed income securities, including govt. securities,
treasury bills, corporate bonds, money market instrument etc..
The foretold fund is fairly liquid.
Withdrawal can be done at any time.
Capital remains safe.
Return on investment is low.
Equity mutual funds are short-termed.

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Watching