NRI Accounts: Rules, Types, and How to Invest from Abroad

When dealing with NRI accounts, banking facilities that let Indian citizens living overseas manage money in India. Also known as Non‑Resident Indian banking, they let you move funds, earn interest, and invest without being physically present. These accounts come in two main flavors: NRE account, a repatriable rupee account funded by foreign earnings and NRO account, used for Indian‑source income and subject to tax. Understanding NRI accounts is the first step to keeping your money safe and growing it from wherever you live.

Eligibility is straightforward: you must be an Indian citizen who has lived abroad for at least 182 days in a financial year. The bank will ask for a passport, visa, overseas address proof, and a recent photograph. All this information goes through the KYC (Know Your Customer) process, which now also checks FATCA compliance for U.S. tax residents. Completing KYC unlocks the ability to fund the account, set up auto‑transfer, and start investing. Skipping any document usually means the account stays in a dormant state, so double‑check your paperwork before you submit.

Tax rules are the part most NRIs worry about. Money in an NRE account is tax‑free in India – interest, capital gains, and principal can be repatriated without any deduction. By contrast, an NRO account attracts Indian income tax at the applicable slab, and banks automatically deduct TDS (Tax Deducted at Source) on interest earned. When you want to bring money back, the NRE balance moves out freely, while the NRO balance is limited to the amount of tax you've paid plus any additional clearance from the tax department. Keeping a clear record of TDS certificates helps you claim refunds if you’re eligible.

Once the account is live, you can explore a range of investment choices. Mutual funds are popular because you can start with a small amount and benefit from professional management. Fixed deposits (FDs) in NRE accounts often carry higher rates than regular savings accounts, and the interest is tax‑free. Some banks also allow you to trade Indian stocks, buy ETFs, or invest in REITs directly from your NRI portal. Each option has its own risk‑return profile, so match it with your time horizon and comfort level.

Opening an NRI account today is mostly a digital experience. Most major banks let you start the application on their website, upload scanned documents, and complete e‑KYC with an OTP sent to your overseas mobile number. A few banks still require a physical signature at a branch, so plan ahead if you need that route. After approval, you’ll receive online banking credentials, a debit card, and the ability to set up standing instructions for regular fund transfers. Remember to link the account to your preferred currency conversion service to avoid unexpected conversion fees.

Here are a few practical tips to get the most out of your NRI accounts. First, use the NRE account for any foreign earnings you want to keep tax‑free; reserve the NRO account only for income generated in India, such as rent or dividends. Second, compare FD rates across banks – small finance banks sometimes offer 7‑8% for NRE deposits, which beats many fixed‑income options abroad. Third, keep an eye on the double‑taxation avoidance agreement (DTAA) between India and your country of residence; it can reduce the tax you pay on NRO interest. Finally, set up alerts for currency fluctuations so you can time your repatriation when the rupee is favorable.

What you’ll find in the article collection below

Below you’ll discover detailed guides on topics like how NRIs can buy mutual funds, the tax impact of NRO earnings, step‑by‑step KYC procedures, and the best banks offering high‑interest NRE fixed deposits in 2025. These pieces break down complex rules into simple actions, so you can start managing your money across borders with confidence.

Ready to dive deeper? Browse the list of articles to see clear examples, checklists, and real‑world numbers that will help you make informed decisions about your NRI accounts and the investments you can grow with them.