26 Dec 2021 | 4 min read
The NRI Demat account is a Demat account used by NRIs/PIO & OCI Cardholders to keep securities including Stocks, Mutual Funds, Bonds, etc. in E-format. As per the RBI rules, NRI needs to open two separate Demat Accounts-
While an NRI repatriable Demat account is an ordinary Demat account with a sub status is known as NRI Repatriable. This account is required for NRIs to invest in the foreign exchange in the Indian stock market.
There are various two types of bank accounts for NRIs:
One can open an NRE account to manage overseas earnings. The funds open in this account are fully repatriable that can be transferred abroad. Here are some key features of the NRI Repatriable Demat Account:
Read More:- How can NRI invest in mutual funds in India?
Here are some of the key features of the NRI Repatriable Demat Account are as under:
NRIs' Indian income, such as rent, dividends, and pensions, is managed through an NRO account. Legally, an NRO account is a non-repatriable account. After paying all applicable taxes, the RBI enabled NRIs to remit up to USD 1 million each financial year from an NRO account after May 2012.
Get complete features of the NRO Demat account for NRI are as follows:
Open an NRE Demat account for repatriation-based investments and an NRO Demat account for non-repatriation-based investments.
Details |
NRE Demat Account |
NRO Demat Account |
Type of bank account linked |
It is tied to an NRE Bank account (PIS or Non-PIS) |
The NRI Non-PIS account is linked to the NRO Demat account. |
Purpose |
For repatriation-based investments |
Non-repatriation investments are those that are made with the intention of not being repatriated. |
Fund repatriation |
Fully repatriable |
Proceeds from the sale of securities and investment profits can be repatriated after taxes have been paid. Amounts of up to $1 million can be transferred internationally. |
While the application process varies from broker to broker and bank to bank, the following steps and papers are standard. You must complete the NRI Demat account opening form and submit it to the appropriate office along with the following documents:
The Indian Embassy or another competent body should self-attest and notarize all documents.
Afinoz is an IIFL Securities corporate partner that provides NRI Demat account opening services. In a few simple steps, you can open an NRI Demat account as well as an NRI bank account using the Afinoz App:
At the end of the blog, you can get the complete information of the NRI Repatriable Demat Account. Either, it is the meaning, purpose, and process of the NRI Repatriable Demat account. For more details, you can also visit Afnoz.com and get more information.