Can I hold multiple NRE PIS accounts? (2024)

FAQs

Can I hold multiple NRE PIS accounts? ›

An individual NRI is authorized to operate only one NRE PIS Account. If under any circ*mstance, 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 PIS approval received from RBI can then be linked with the NRE/NRO account depending on whether an NRI wants to trade on repatriation or a non-repatriation basis. Thus, an NRI can have only one NRE PIS account and one NRO PIS account.

NRIs can get the PIS letter with the help of the bank where the NRE or NRO account was opened. RBI has authorised only designated branches of a bank to administer the PIS. To open a Zerodha account, NRIs must have a PIS account with any one of the following banks: IDFC First, Yes bank, Axis, HDFC or IndusInd bank.

Cash withdrawal limit of Rs. 25,000 per day and transaction limit (w.e.f. October 1, 2011) of Rs. 50,000 per day at merchant establishments.

The PIS bank account is used only for trading in stock markets in India. It is only for NRIs for trading in equity segment and not for other investments. Transactions in a PIS account are reported to RBI.

The second question is easy to answer: Yes, you can have multiple brokerage accounts. And it may even be beneficial, provided you can answer the first question: How do you know which brokerage services are best for you? (Learn how to choose the best online broker.)

An NRI, at any point in time, can hold multiple demat accounts under their name. In fact, if you're a regular investor, you can choose to open all the above three NRI demat accounts - one for repatriable investments, another for non-repatriable investments, and a third for investing in the secondary market.

An NRI can invest in the Indian stock market without PIS (Portfolio Investment Scheme) subject to certain restrictions. However, an NRI is only allowed to invest in following shares through a non-PIS account: Shares acquired through a non- PIS.

How Does the PIS Account for NRI Work? You can freely invest in the Indian stock market either on repatriation or non-repatriation basis. However, you need PIS-enabled NRE or an NRO account to participate in share trading.

NRE bank account is for investing foreign earnings in India in the Stock Market while NRE Non-PIS Account can be used to invest in foreign earning in India (other than stocks) and to manage earning from selling shares acquired through IPO, ESOP, or received as a gift.

How much money can I transfer to my NRE account from USA? ›

Send as much money you want: The Foreign Exchange Management Act (FEMA) does not specify any limit on the amount of money you send to a NRE account. However, this income needs to be earned legally in your country of residence. If you are transferring very high amounts you may be asked to explain your source of funds.

Under the Act, any individual who fails to do so is liable to pay up to 3 times the amount involved in the existing savings account or Rs 2 lakh when the sum is not quantifiable. In addition to this, a penalty of Rs 5,000 gets charged every day from the first day of intervention until the penalty is paid.

Tax for receiving money from the USA in India

There is no recipient tax on money being transferred from abroad to India when it's being sent to blood relatives. In general, “blood relatives” — including spouses, children and grandchildren, siblings or in-laws — do not pay tax on any amount received.

Portfolio Investment Scheme (PIS) account: A PIS account requires a permission letter from the RBI to buy and sell shares in the Indian markets. The permission letter has to be through one of Zerodha's partner banks (HDFC, IndusInd, IDFC First, Axis, Yes bank).

Since PIS is applicable for shares to be purchased and sold on recognized stock exchanges in India. Tax @ 15% will be deducted if the shares have been held for less than 12 months.

No minimum balance requirement in PIS.

Is it safe to keep more than $500,000 in a brokerage account? It is safe in the sense that there are measures in place to help investors recoup their investments before the SIPC steps in. And, indeed, the SIPC will not get involved until the liquidation process starts.

It's OK to invest more than $500,000 through a good investment company. Just make sure that you pick a company that offers low fees.

One popular method is the 2% Rule, which means you never put more than 2% of your account equity at risk (Table 1). For example, if you are trading a $50,000 account, and you choose a risk management stop loss of 2%, you could risk up to $1,000 on any given trade.

How many accounts can an NRI have in India? ›

A non-resident Indian can open three types of accounts in India as authorised by the Reserve Bank of India (RBI). The money in the accounts can be in the form of a rupee or foreign currency accounts. Getty Images FCNR accounts can be opened only in form of term deposits of 1 to 5 years.

And the ceiling for individual investment for NRIs/PIOs is 5 per cent of the paid up capital of Indian company. A list of companies can be found on the RBI's website. NRIs are also not permitted to engage in intraday trading. They have to make investments that are delivery-based.

The RBI guidelines require NRI to open a 'single designated' account (NRE/NRO account) under the PIS for routing investments in the Indian stock market. Based on these guidelines, some banks like Axis Bank, HDFC Bank do not allow NRIs to open PIS as a joint account.

Under the Act, any individual who fails to adhere to the guidelines is liable to pay a penalty of up to 3 times the amount involved in the existing resident savings account or Rs 2 lakh when the sum is not quantifiable.

^Reporting charge of Rs 100/- will be levied per trade date - separate for purchase and sale irrespective of transacted quantity or value for wealth customers.

Just like Indian residents, Non-Resident Indians (NRIs), Overseas Citizen of India (OCIs), and Persons of Indian Origin (PIOs) can invest in sip plans in India. Systematic Investment Plan or SIP helps you to make mutual fund investment in an affordable way.

Taxation rules for NRIs and residents of India are alike. For equity mutual funds, the investments made for 1 year or less will be taxed at 15% as per the short-term capital gains taxation rules. For long-term investments, the mutual funds are taxed at a rate of 10% as per the long-term capital gains taxation rules.

A 3-in-1 NRI Account is a stock market investment account designed for NRIs. It consists of NRI Bank Accounts (NRE or NRO), PIS Permission, NRI Trading & NRI Demat Account. Some NRI stock brokers also offer PAN Account opening services.

Prior to transferring funds from India to the US you'll need to complete Form 15CB, and your bank will ask you to provide proof of the source of the money, such as a copy of the property sale agreement.

How much money can NRI send from India to USA? ›

Access your Net Banking account with your Customer ID and IPIN (Net Banking Password). Select 'Repatriation of Funds' under 'Transact' tab. Select transaction type as Repatriation of Funds from NRE Account OR Repatriation of FCNR Deposit. Select the beneficiary and Proceed with the transaction.

Do I have to Pay Taxes In the USA for the interests earned? The simple answer is yes. You would need to pay taxes on the interests earned on your NRE or NRO accounts.

Once you come back to India permanently, you are a resident as per FEMA. And residents are not permitted to keep a NRE account. Interest on NRE FD is tax exempted only for Non-Residents. Therefore from the day you come back to India any interest earned in NRE FD becomes taxable in your hand.

There is no limit on sending money from USA to India, provided you pay the required taxes. But, there is a limit of US $14,000 per person per year for gift tax free transactions. Any amount sent above US $14,000 per person per year, the sender is responsible for paying the gift taxes.

To transfer money from USA to India online, you can avail of the telephonic or wire transfer facility. The Indian bank will have correspondent banks through which such a transfer takes place. If your bank is part of the SWIFT network, the money can also be transferred through SWIFT.

$1 = ₹ 82.05 (USD to INR) is the best current exchange rate to transfer money from USA to INDIA (US Dollar to Indian Rupee)

We stopped providing support for the Pi platform for the past 12 months and have now completely phased it out. Pi is not an in-house Zerodha platform and since the software updates on Pi are dependent on a third-party vendor, the development can be slow and not optimal.

Non-resident Indians

Yes, NRIs can also trade in Indian capital markets by opening a Demat Account with a DP or depository participant of their choice.

How do I get a PIS permission letter? ›

To obtain a PIS approval letter from RBI, you need to open an NRE PIS Account. The following documents are required to open an NRE PIS account: Valid passport copy. Proof of NRI status i.e. Visa copy, Work/Residence permit.

The PIS bank account is used only for trading in stock markets in India. It is only for NRIs for trading in equity segment and not for other investments. Transactions in a PIS account are reported to RBI.

NRIs can transfer funds from the NRI Bank Account to PIS account through internet banking. When the NRI transfers money from the NRI account to PIS bank account, the bank informs the broker about the funds available for trading. Then, the broker updates the NRI trading account with the available limits.

Please send the original request to PIS Team, ICICI Bank Ltd, 215, Free Press House, Nariman Point, Mumbai-400021. Please submit gift deed in original and proof of relationship in case you have gifted any PIS shares to your relative.

There's no legal limit to the number of investment accounts one person can have. And in some cases, having multiple brokerage accounts could be the best move for your financial situation. It's worth noting that whether you can have multiple brokerage accounts and whether you should are two entirely different questions.

While multiple brokerage accounts may provide benefits to a narrow range of retail investors, the added work may outweigh any advantage. Having more than one account means getting multiple emails, handling added 1099 tax forms, negotiating different platforms, and using many passwords (which carry hacking risks).

To sum up, creating separate portfolios for different goals will give you the much-needed clarity and understanding of your financial goals. It also helps you stay focused and constant monitoring enables you to reduce or increase your investments as per your convenience.

The 2% rule is an investing strategy where an investor risks no more than 2% of their available capital on any single trade.

Is it safe to have all your money in one brokerage? ›

The answer, most financial advisers say, is yes. But there are no guarantees. There's a lot to be said for consolidating investment accounts under a single brokerage roof: It allows for easy management and maybe more attention or discounts from the firm.

What is the Rule of 72? The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double.