Investment avenues where NRI’s can invest on repatriation basis

Investment avenues where NRI's can invest on repatriation basisInvestment avenues where NRI's can invest on repatriation basis

I got more than 20 emails and comments on our blog in the last one week from various NRI’s asking for the investment avenues where NRI’s can invest in on repatriation basis. Due to fall in rupee value, many NRI’s are looking to invest in India now. While there are several investment options in India where NRI’s can invest, only few of them can be repatriated / money can be taken back to the country they are residing now. In this article, I would detail about investment avenues where NRI’s can invest on repatriation basis along with detailed procedure.

Investment avenues where NRI's can invest on repatriation basis

1) Bank Fixed Deposits

NRI’s can open a bank account in NRE (Non-Resident External account) / FCNRB (Foreign Currency Non Resident Bank account) with any bank in India. The account is maintained in foreign currencies like USD, GBP, SGD etc. Once you open NRE savings account, you can open a NRE fixed deposit. Below are the features.

  • Your deposit and interest would be maintained in foreign currency
  • Interest earned are not taxed in India
  • Funds in such accounts are freely repatriated
  • You can open NRE FD account for the tenure of 1 to 10 years

Also read: Complete list of NRI Investment Options in India

2) Mutual Funds

NRI’s can invest in mutual funds through NRI / NRO / FCNRB account or thru inward remittance only. They need to carry them as per FEMA guidelines. NRI’s need to invest at least for 3 years in order to repatriate their money. Many brokers would take care of the entire process from opening the account and processing the documentation etc. Some of the brokers who carry such process are ICICI Direct, etc.

You need to submit application of KYC. KYC indicate the NRI/Resident status. When you link your NRI/NRE account with mutual funds account, any investment redeemed can be repatriated.

3) Real Estate investments

NRI’s can invest in residential and commercial properties without any approvals. However they cannot invest in agricultural land and plantation regions. Only original amount invested would be repatriated and any profit has to be reinvested in India itself. Say e.g. if you invested in real estate property for Rs 10 Lakhs and sold the property for Rs 15 Lakhs. You can repatriate only Rs 10 lakhs which his original investment and balance of Rs 5 Lakhs should be reinvested in India itself. You can choose another property or invest in other investment avenues if you want to invest this surplus money.

4) Government Bonds and Securities

NRI’s can invest in Govt bonds and securities. If you open account through NRE / FCNR account, the investments can be repatriated. However you need to invest at least for 3 years.

Also read: How NRI's can invest in mutual funds

5) Investment in Stocks

NRI’s can invest in stocks as per guidelines specified by RBI. You need invest by opening a Portfolio Investment Scheme (PIS) run by Reserve Bank of India where you can opt for repatriation or non repatriation. NRI’s can also invest in Initial Public Offerings (IPO’s) where such company has complied with regulatory norms. Below is the process to open PIS Scheme

  • Open NRE/NRO account with any bank in India
  • Apply for PIS Scheme with the same bank which provides facility "Repatriation"
  • Open demat account with any broker / depository participant in India
  • Sign the document with any broker to do the transactions with the NRE/NRO account through PIS Scheme.

Conclusion: Many NRI’s are struggling to invest in India as they are looking more from repatriation option. While there are other investment options, NRI’s should know whether repatriation can be done or not before investing in such options.

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Investment avenues where NRI's can invest on repatriation basis


  • S John

    Hello Suresh,  I am an NRI based in the UAE.  I need your advice on what's the best way to park some foreign currency funds in such a way that I can earn some returns by the time I need it back after about 1-year.  The US$ fund that I curently have is required after 1-year for my children's education in the UK.  The money required after 1-year (in terms of University fees plus other expenses) will be in UK Pounds Sterling.

    In this context, (a) where do you suggest that I invest this money for a short-term of 1-year to gain maximum returns  and (b) will it be better to invest in US$ or Pounds Sterling funds?

    Thanks in advance for your quick help.


  • Sam

    I'm a dubai based NRI and would like to invest around 15lakhs.I'm looking for a long term investment.

    Kindly help me

    • Sam, You can invest in mutual funds to reduce your risk. Please invest in diverisfied funds and large cap funds. Pls see articles on this website about top funds in this category

  • Ganesh

    Iam an NRI from Oman.

    Your articles are really informative.

    Your website is like one stop solutions to investment.

    Iam looking forward for more investment articles for NRI's

    Thank you suresh..


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