We, Zerodha, have ~40k NRI customers with an average account value of ₹40L, nearly 10x our overall average of ₹3.6L for resident accounts. Most of them opened accounts the hard way, with physical paperwork. If onboarding were fully online, this base would be much larger.
SEBI recently made changes that have allowed us to significantly simplify Non-PIS NRI accounts: they now work like resident accounts, with fully online Aadhaar-based onboarding (when visiting India) and intraday, BTST, and F&O access with no need for a CP code. We’ve also reduced the brokerage from ₹100 to ₹50 per order.
For context: NRIs can open NRO (without PIS) or NRE accounts to invest in India. NRE accounts allow repatriation of funds to your country of residence, but are more complex to operate. NRO (Non-PIS) accounts are simpler to open and operate, though repatriation is capped at USD 1 million per year.
Hoping to see more NRI capital flowing back into Indian businesses.
When u say nre ac is complex to operate - do you mean complex to open, operation, the wsy i know is very simple and easy just like any other ac. What complexity is there
With nro, the way i understand remittance of 1 million has all the complexity of remitting from a resident ac. It is not as simple as remitting from nre ac. Is tcs collected on nro ac when remitting which is not there on nre ac
You’re right that the day-to-day operation of an NRE account is straightforward once set up. The complexity is specific to trading via the PIS (Portfolio Investment Scheme) route:
Fund allocation delays - Unlike Non-PIS, you can’t trade instantly; funds need to be allocated/blocked before you can place orders
Obtaining PIS letters from banks
Post-trade declarations - For example, after an IPO allotment or trade, you need to submit declarations to your bank for PIS compliance, which involves paperwork
PIS settlement charges - Banks charge fees for each transaction settlement
Limited bank account options - The broker-bank settlement needs to be integrated and not all banks partner with brokers, so your options are limited
Trading restrictions - PIS only allows equities and MFs. With Non-PIS, you can also do F&O, BTST, and intraday
So while the account itself works like any other, the PIS overlay introduces operational friction that a regular resident account doesn’t.
For NRO, The process requires:
Form 15CA/15CB (CA certificate needed)
Bank verification of source of funds and tax compliance
Documentation to prove taxes have been paid on the income
That said, TDS may have already been deducted on certain income types credited to your NRO (e.g., ~30% on interest income, or on capital gains), but that’s separate from the remittance process itself.
So to summarise: NRE remittance = no paperwork, no tax implications (funds were foreign-sourced). NRO remittance = documentation overhead + ensuring taxes are paid
