Can you get dividends to NRE account from Non-PIS account?

Zerodha
1

Is it possible to get dividends credited directly to NRE account from a Non-PIS account?

According to the RBI: “Current income like rent, dividend, pension, interest etc. will be construed as a permissible credit to the NRE account.”

2

If you open an NRE account, the PIS account is linked to the trading account, based on the balances in the PIS account the trading is allowed. The NRE-SB account is linked to the underlying demat account. This is done for the RTA’s to credit dividend etc.
For an NRO account, the funds added to trade/invest is non repatriable. So the Dividends earned too are non- repatriable and the dividends for such holdings will go back to the NRO-SB account linked to the demat and trading account.

If your point of reference for this is this RBI link:Reserve Bank of India.

Please do read along with the line following this too i.e.
Care: Only those credits which have not lost repatriable character

3

Ah ok.

I assumed that “those credits which have not lost repatriable character” refer to the Dividend itself not having lost the repatriable character by touching an NRO bank account.

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