Investing in India Guide for NRIs

Non-residents can maintain two types of Rupee Account – Non-Resident (External) Rupee Accounts (NRE Accounts) and Ordinary Non-Resident Rupee Accounts (NRO Accounts). The difference between NRE and NRO Account lies in that the funds remitted from abroad or local funds, which can otherwise be remitted abroad to the account holder, can be credited to NRE Accounts. Local funds, which do not qualify for remittance outside India, are required to be credited to NRO accounts. It may be noted that money may be transferred from NRE to NRO Account but not vice-versa, and money once credited to NRO Account cannot be transferred back to NRE Account as the money becomes non-repatriable. Apart from all this, NRIs can use these accounts to make investment in Indian mutual funds.