Know All About NRE PIS Accounts

A solid investment in NRE PIS and NRE non-PIS accounts can help your money grow and provide you with an alternate source of regular income. As we know, there is no investment scheme that offers a high rate of returns at low risk. Risk and returns in most financial schemes are inversely proportional. However, investments can bear good fruits if all factors are considered while investing. NRE PIS or Non-Resident External PIS accounts are the investment instruments that are growing in popularity for their ability to yield higher returns.

Read more
Best Investment Plans
  • Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • ₹ 1 Crore

    Invest 10k Per Month*
  • Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Grow Your Wealth !

Best Plans With High Returns Available On One Platform

View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

What is an NRE PIS?

Also known as Portfolio Investment Scheme (PIS), the NRE PIS scheme is explicitly defined in the Foreign Exchange Management Act, 2000 under Schedule-3. Under this, Non-Resident Indians can trade in shares and convertible debentures of Indian companies listed in an Indian recognized stock exchange. 

What is an NRE PIS Bank Account?

NRE PIS bank account is popular among current investors, primarily NRI retail investors. The NRE PIS Bank Account is a form of Saving Bank Account specially customized for Non-resident Indians. 

This scheme has given the Non-resident Indians the special allowance of PIS from the Reserve Bank of India, which motivates them to invest in a resurgent economy like India. Moreover, it enables the NRIs to trade Indian stocks by routing completed purchase/sale transactions through their respective NRE PIS account with a referenced bank branch.

Several options can help ensure an alternative source of income like NRE PIS, NRE Non-PIS Account, PIS, Non-PIS Account, PIS Demat Account, and PIS for NRI to choose your options carefully.  

For any Non-resident Indians, who would want to use their money earned abroad  for trade or investing  in Indian stocks, the Non-Resident External (NRE) PIS account becomes a reliable option. 

Salient Features NRE PIS Account 

  • The sole objective of the Non-Resident External PIS account is to assist Non-Resident Indians to operate in securities in India such as Mutual Funds, Equity Stocks, IPOs, Bonds, and ETFs.
  • Non-Resident Indians can make the optimum use of their income earned abroad and diversify their portfolio by investing in India.
  • An NRI, Person of Indian Origin (PIO) & OCU Accounts, can open an NRE PIS account.
  • An individual NRI is authorized to operate only one NRE PIS Account. If under any circumstance, a Non-Resident Indian plans to open another NRE PIS Account or shift to a different bank, they would have to close their existing NRE PIS account.
  • The Reserve Bank of India takes note of every transaction, which is processed using the NRE PIS account. The respective bank of the NRI sends the report to the RBI.
  • The NRI first needs to transfer a stipulated amount of funds to their NRE PIS account before commencing trading in the Indian stock markets.  
  • Due to its popularity, all the leading banks in India, including the State Bank of India, HDFC Bank, Yes Bank, ICICI, and Axis Bank, present the NRE PIS account facility to their NRI customers. In addition, most banks have got designated branches that have been licensed to issue this Portfolio Investment Scheme.
  • If required, the Non-Resident Indians can consent to a resident or non-resident Power of Attorney (PoA) holder to manage this NRE PIS account on their behalf. 

What are the benefits available for an NRE PIS Account?

A Non-Resident External bank account is fully compatible in the sense that the funds accumulated in the NRE account can be taken outside India without informing RBI. Non-resident Indians can invest their money depending on their capacity to absorb risk and short-term and long-term needs. 

The best part of opting for an NRE PIS account is the flexibility to choose between equity and debt components in the various alternatives to get the best funds. 

For the convenience of the Non-resident Indians, their funds can be converted into any foreign currency of their choice. Moreover, their money can also be transferred from an NRE account to their respective NRO account as and when required. 

On the other hand, a Non-PIS account is just another run-of-the-mill Savings Bank Account opened by an NRI (can be NRE or NRO). 

Key Facts About NRE PIS Account

The Non-resident Indians have an option to choose a specific amount of payout with different sets of stocks and convertible debentures on BSE & NSE. It is mandatory to open the NRE Saving Bank Account first before proceeding with opening an NRE PIS Account. 

Following this process, the respective bank would have to apply for a special PIS Certificate based on the PIS Application Form on behalf of the NRI. 

Once all the formalities are completed and PIS permission is granted, it is digitally associated with the NRE bank account to formally be regarded as NRE PIS Account. Whenever the NRI carries out any transactions through their NRE Account, it is immediately reported to RBI. It is done to ensure the safety of NRE PIS accounts and avoid any misuse.

Written By: PolicyBazaar - Updated: 21 September 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Sign up for newsletter
Sign up our newsletter and get email about Investment Plans.

Investment insurance articles

Recent Articles
Popular Articles
Dena Bank NRE FD Rates

09 Aug 2021

Dena Bank is a public sector bank that offers need-based options...
IDBI Bank NRI FD rates

28 Jul 2021

Fixed Deposits or Saving Bank accounts are good options to...
Bank of Maharashtra NRE Fixed Deposit Rates

28 Jul 2021

Bank of Maharashtra is offering a wide range of fixed deposit...
Citibank NRE FD Rates

28 Jul 2021

Citibank offers Fixed Deposit NRE accounts for the NRI's...
Know About Senior Citizen Savings Scheme

19 Jun 2020

The Senior Citizen Savings Scheme is a government-sponsored...
Best LIC Policies For Investment in 2021
When it comes to purchasing a life insurance plan, 'LIC policies' are the most popular choice for customers. LIC...
What is Investment and What is Its Purpose?
Different people possess different notions and understanding of “investment”. To start with, first of all...
Post Office Monthly Income Scheme (POMIS)
Are you looking for an investment avenue which is safe and secure, earns substantial returns with a short locking...
SBI Life Insurance Plans in India
SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides...
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily...
Download the Policybazaar app
to manage all your insurance needs.