NRE Non-PIS Bank Account

An NRE Non-PIS account is an ordinary NRE saving bank account (without PIS permissions). It is an external saving bank account opened for NRIs.

An NRE Non-PIS account is an ordinary NRE saving bank account used to manage the money earned from abroad by an NRI. It is commonly known as NRE Account. It is an account for which the transactions are not reported to RBI.

The NRE Non-PIS Account is used by NRIs to invest their foreign earnings in India (except stock market). This account also takes care of selling all those shares which are not allowed under PIS.

Transaction & Payments allowed with NRE Account (Non-PIS)

The NRE Non-PIS account can be used for trading in Shares acquired under IPO, ESOPs or received as a gift. It can also be used to pay for non-brokerages charges like account opening fees, NRI Demat Account AMC, etc.

Please note that trading in the stock exchange or secondary market in India is not allowed by routing funds through this account.

NRE Non-PIS Account Facts

• An ordinary NRE account is used to manage income earned from abroad.
• This account cannot be used for investing/trading in the Indian stock market.

 

 

Answered on 2020-07-01

1. 1. Who can open NRE non-PIS account?

   NRIs, PIOs, and OCIs are eligible to open (Non-Resident External) NRE Non-PIS Bank Accounts in India.

   NRE Account (Non-PIS) is for NRIs to invest their foreign earnings in India. This account is fully repatriable, which means money can be transferred back to the country of origin without any hassle. The money in this account remains in Indian Rupee.

   NRE Account is suitable for all kind of investments in India except stock market investment. For NRI stock market investors an NRE PIS Bank Account is required.

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2. 2. What is the difference between NRE PIS & NRE Non-PIS account?

   NRE PIS Account Vs NRE Non-PIS Account

   NRE PIS Bank Account and NRE Non-PIS Account both are repatriation accounts. NRE bank account is for investing foreign earnings in India in the Stock Market while NRE Non-PIS Account can be used to invest in foreign earning in India (other than stocks) and to manage earning from selling shares acquired through IPO, ESOP, or received as a gift.

   	NRE PIS Account	NRE Non-PIS Account
   Repatriability	Yes	Yes
   PIS Permission	Required	Not Required
   Purpose	Investing foreign earnings in India in Stock Market	Investing foreign earnings in India (except Stock Market). It can also be used for selling shares acquired through IPO, ESOP, or received as a gift.
   RBI Reporting	All transactions reported to RBI	None
   Stock Investment	Yes	No

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