Manoj Negi
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NRI PIS and Non-PIS bank accounts allow NRIs and PIOs to invest in securities in India such as mutual funds, equity stocks, IPOs, ETF, bonds, etc. NRIs can open a PIS or Non-PIS account with any of the brokers in India like ICICIdirect, IIFL Securities, HDFC Securities, Zerodha, Angel Broking, etc. The investment purposes of NRI PIS and Non-PIS accounts are different. You must know the difference between NRI PIS and Non-PIS Bank accounts and open an account that suits your investment purpose.
Also Read: Best Demat Accounts for NRIs 2022
NRI PIS account
Portfolio Investment Scheme or PIS is an RBI scheme for NRIs that enables Non-Residents and PIOs to buy and sell shares on a repatriation basis in Indian stock markets.
Here are the key features of PIS account:
- 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
NRI Non-PIS account
A Non-PIS account is an ordinary NRI savings bank account that allows NRIs to invest in shares of Indian companies on a non-repatriation basis. A non-PIS account opened with any bank in India.
- Transactions in this account are not reported to the RBI
- An NRO non-PIS account can be used to invest in equity shares, mutual funds, IPOs, bonds, etc. on a non-repatriation basis
- Can be opened with any bank in India
Also Read: PINS Account: NRI Stock Trading in India
Difference between NRI PIS and Non-PIS
| Features | PIS Bank Account | Non-PIS Bank Account |
|---|---|---|
| Purpose | To buy/ sell equity shares on a repatriation basis | To buy/ sell securities and mutual funds on a non-repatriable basis |
| RBI rules | The secondary market transactions are reported to RBI | The secondary market transactions are not reported to RBI |
| Source of funds | Can be repatriable | Can be repatriable and non-repatriable |
| Account | NRE savings account | NRE and NRO savings account |
| Account uses | PIS account can be used by NRIs to buy shares in the secondary market on a repatriation basis. It can’t be used to make other payments. | Non-PIS account can be used by NRIs to buy equity shares, mutual funds, IPOs, ESOP and bonds on a non-repatriation basis |
Best Brokers for NRIs in India
| S. No. | Broker | Brokerage |
|---|---|---|
| 1 | Zerodha | 0.1% or up to Rs. 200 per trade (PIS) & Rs. 100 (Non-PIS) |
| 2 | ICICI direct | 0.50% – 1.25% |
| 3 | HDFC Securities | 0.75% |
| 4 | Angel BrokingNRI Account | As per terms and conditions |
| 5 | AxisDirect | 0.75% |
| 6 | IIFL Securities | 0.50% |
| 7 | Kotak Securities | 1.00% |
| 8 | Sharekhan | 0.50% |
| 9 | Ventura | 0.40% |
| 10 | ProStocks | Rs. 100 per trade |
Also Read: 10 Best International Mutual Funds to Invest in 2022
The Indian market is growing by leaps and bounds with each passing day and people are aggressively investing in the Indian stock market. It’s the time for NRIs to reap rich dividends back home. SBNRI is closely working with leading brokers and banks like IIFL, Zerodha, SBM Bank, etc. to help NRIs open NRI account online and invest in India.
Also Read: Best NRI Trading Account in India 2022: Top NRI Stock Brokers
Note: A Demat account is not mandatory for NRIs to invest in mutual funds in India. NRIs can download SBNRI App to choose from 3000+ mutual fund schemes in India or to ask any questions related to mutual fund investment.
Open an NRI PIS/ Non-PIS and Demat accounts instantly and get the best investment advisory. You can get detailed mutual fund advisory from experts at SBNRI. You can download SBNRI App from the Google Play Store or App Store to ask any questions related to PIS Account, NRI account opening online and tax filing in India. To ask any questions related to investment, click on the button below. Also visit our blog and YouTube channel for more details.
FAQs
Who can open NRE PIS account?
NRIs, PIOs and OCIs can open an NRE savings bank account with PIS permission. After opening a PIS account, NRIs can invest in the Indian stock market on a repatriation basis.
Can NRI have two PIS accounts?
As per RBI guidelines, an NRI can have one PIS approval from a designated bank. The PIS approval can be linked with an NRE/ NRO account depending on their repatriation requirements. Hence, NRIs can have only one NRE PIS account and NRO PIS account. For the NRO mode of transactions, PIS approval is not mandatory.
What are the bank charges for an NRI PIS account?
PIS account opening charges vary from bank to bank. HDFC PIS account charges are Rs. 1000, PIS account Axis Bank charges are Rs. 1000, PIS account charges levied by Kotak Securities are Rs. 1500, and SBI Cap Securities charges are Rs. 750.
Which transactions are not allowed under PIS?
Transactions that can’t be done through a PIS account include:
– Shares purchased using the PIS account can’t be sold under PIS
– IPOs or shares bought as a resident
– Fresh subscription made for IPOs as an NRI
– Mutual fund investment
– Equity derivatives investment
What are the benefits of PIS account?
A PIS account enables NRIs to invest in shares of Indian companies in secondary market on repatriation or non-repatriation basis through a stock broker.
Can NRI purchase shares in the primary market without PIS permission?
Yes, NRIs can purchase shares in the primary market on repatriable as well as non-repatriable basis. Investment can be made via regular NRE/ NRO savings account or through inward remittance.
- difference between nri pis and non-pis bank account
- non-pis bank account
- pis bank account
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