NRO PIS Bank Account

An NRO PIS Bank account is an NRO Saving Bank account with the PIS permission. The Portfolio Investment Scheme (PIS) is a scheme by RBI which permits NRI to invest in Stocks and Mutual Funds through stock exchanges in India.

An NRO Bank Account is opened to manage income earned in India by an NRI i.e. Rental, Interest, Pension, etc. This account is also used for equity derivatives trading (F&O) in Indian stock market.

The NRO PIS account can be used for investing in equity, equity derivatives, Mutual Funds and IPOs investment in India. However, only the gains from the investments are freely repatriable, not the principal amount. Money held in this account can be repatriated with additional paperwork and up to a limit of 1 million USD per financial year.

NRO PIS Key Facts

1. NRO PIS account can be opened by NRIs, PIOs, and OCI Cardholders.
2. The NRO PIS account is same as an NRO account. Only that it has PIS permission.
3. NRO PIS account allows NRIs to trade in Stocks, Stock Derivatives, Mutual funds and IPOs using the income earned in India.
4. Trading in Equity Derivatives (F&O) is permitted only through the NRO PIS Account.
5. Investments from the NRO PIS account is treated as resident investments.
6. All the transactions done using the NRO PIS account are reported to RBI by the bank.
7. It is offered by all major banks including ICICI, SBI, and HDFC, etc.
8. Bank, where you have NRO bank account, helps you get the PIS permission.
9. A resident Power of Attorney (PoA) holder can be authorized to operate this account.

Answered on 2020-07-02