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NRE PIS Bank Account

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The NRE PIS Bank Account is the NRE Saving Bank Account with the PIS permission from RBI to invest in India Stock Market. It facilitates NRIs to trade in stocks using the income earned abroad.

The NRE PIS Bank Account is the NRE Saving Bank Account with the PIS permission from RBI to invest in India Stock Market. It facilitates NRIs to trade in stocks using the income earned abroad.

The Non-Resident External (NRE) PIS account is a must for NRIs looking to trade/invest in stocks in Indian stock exchanges using the income earned abroad.

An NRE bank account is fully repatriable i.e. funds in NRE account can be taken outside India without permission from RBI. The funds can be converted into any foreign currency. Money can also be transferred from NRE account to NRO account.

Portfolio Investment Scheme (PIS) is a scheme by RBI for NRIs to buy and sell shares and convertible debentures of Indian Companies on BSE & NSE by routing such transactions through their bank account with a Designated Bank Branch.

For NRE PIS Account, the NRE Saving Bank Account is opened first. After this, the bank applies for PIS Certificate based on the PIS Application Form submitted by the NRI. Once PIS permission is received, it is linked with the NRE bank account and it becomes an NRE PIS Account.

Note that all transactions in NRE Account are reported to RBI once PIS permission is linked to the NRE account. It is highly recommended to use this account only for stock market investment.

NRE PIS Key Facts

  1. NRE PIS account facilitates NRIs to trade in stocks using the income earned abroad.
  2. NRE PIS account can be opened by NRI, PIO & OCI
  3. Only 1 NRE PIS Account is permitted to an NRI. If you are planning to move to another bank, you have to close the existing NRE PIS account.
  4. All the transactions done using NRE PIS account are reported to RBI by the bank.
  5. Before trading, you need to transfer funds to NRE PIS account.
  6. This account is offered by all major banks including ICICI, HDFC Bank, Axis Bank, and SBI.
  7. A resident Power of Attorney (PoA) holder can be authorized to operate this account.
Answered on

FAQ's

  1. 1. Who can open NRE PIS account?

    NRIs, PIOs, and OCIs are eligible to open NRE PIS accounts in India.

    The NRE PIS account is for NRI's who are interested in investing in Indian Stock Market. The account is a must for trading in shares and convertible debentures in India.

    This account can also be used to route funds for investments in derivatives, IPOs, and bonds.

    As each transaction in this account is reported to RBI by the bank, it is recommended to use NRE PIS account specifically for stock market investment in India.

     

  2. 2. Can I hold multiple NRE PIS accounts?

    No, NRIs can only open one PIS account. However, they can open multiple NRE savings bank accounts. You can open only one NRE PIS accounts.

    If you are planning to move your NRE PIS account to another bank, the steps will be as followed:

    • Close existing NRE Account
    • Open new NRE Account
    • Request for PIS permission on new NRE Account

    Note: NRIs can assign only one Bank for the purpose of routing the transactions under PIS for NRE and NRO. NRIs cannot maintain NRE and NRO accounts under PIS with different bank.

     

  3. 3. How to open NRE PIS account?

    An NRE PIS account can be opened by any bank offering NRI services. All major banks like ICICI, SBI, HDFC, Axis and Yes Bank, etc., offers NRE PIS accounts.

    Note: RBI has delegated powers to designated branches of the banks to issue permission for Portfolio Investment Scheme.

    The PIS permission is taken on an existing NRE Bank account. The bank first opens an NRE bank account and then request for PIS permission on it.

    NRE PIS Account is linked with NRI Trading Account and NRI Demat Account to establish a source of funding for trading and investments. The interest and dividend earnings are automatically transferred to the NRE PIS Account.

     


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