Are there any provision of repatriating the money held in the bank accounts in India?

RBI guidelines clearly stipulates that only that money invested into India using only designated bank account which are allowed to do repatriations, can only allow repatriating facility. NRE account is one such account that allows NRIs – on resident Indians living abroad to freely take back the money to their residing country. Such a kind of non resident bank account provided by the latest NRI Banking Services does not need any kind of extra permission from the RBI to remit the money abroad; the client (NRI or the PIO) can easily bring back that money back to the foreign country where he/she is residing.However such type of a NRI Bank account called: NRO account does not offer such repatriation facility, but still in some adverse cases the RBI can give permission provided the client gives a legitimate reasoning behind such repatriation to the foreign country. The NRI can take all his money proceedings back to the foreign country, both the principal and the profits generated by the investments in India; however he/she has to pay relevant NRI taxes on the capital gains. The NRI has to mention his designated permanent account number and file his returns on a timely basis to enjoy a hassle free repatriation facility from the banker.

What types of Bank accounts an NRI can open in India?

NRIs – Non Resident Indians can now enjoy online NRI banking services various top notch banks in India. The two most popular bank account for NRIs these days are:
1. NRE Bank Account: NRE Stands for Non Residential External Account.
2. NRO Bank Account: NRO Stands for Non Residential Ordinary Account.
Both these accounts are saving type account for NRIs living around the globe, and they can be opened in both individual and joint status.
NRE Bank account provides you a repatriable facility. This means any investment from this account would be subjected to repatriation of funds back to the country in which the non resident Indian is residing. For example if an NRI, PIO or an OCI uses such an account to invest 5 lacs in Indian mutual fund, and happens to generate a capital gain of Rs.2 lacs over a period of 2 years. Then the NRI has all the right to take back the principal along with the profit back to his foreign country where he is residing.
NRO Bank account does not provide repatriation facility. However in certain cases the principal along with the capital gains can be remitted outside of India, but for that special permission needs to be taken by the RBI – reserve bank of India.
Besides such account, there is one more account which is becoming popula among the NRIs is the FCNR account. FCNR stands for Foreign Currency Non Residential Account, such type of an account can be open by an NRI where in he can keep his deposits in a foreign currency without getting them converted into rupees.

Want to Invest in India but confused whether it’s the right time?

With world economy fearing US recession and inflation hitting the roof with commodities like crude & gold prices trading off the charts; we are stood up with a question as to what can a beginner investors like NRIs (Non Resident Indians) strategize to make money by investing in the Indian stock markets like – NSE: National Stock Exchange and the BSE: Bombay Stock Exchange. Global markets have witnessed some real bad times in the past 2 months where Asian markets have almost seen major correction in various benchmark indices of up to 15% -30%.Financial analysts at top banks like Barclays, JP Morgan, Merrill Lynch, etc primarily see the US sub prime mortgage as the major cause behind the turmoil that we have seen in the equity markets. Rising inflation in the US, credit tightening, mortgage fiasco has made business hard for the stock brokers all around the world; and this has also affected the Indian brokers and sub brokers. Some analysts believe that their brokerage business has gone almost 50% down, in both mutual funds and stock trading segment. Financial companies are seeing that NRIs are now quite reluctant to openNRI accounts and some brokers are saying that the markets are bottoming out in India and we are quite close to see some action returning in the Indian stock market, and also in the derivative market (future and options).There are some PIOs – person of India origin who strongly believes in India and its booming economic growth story, and on that note they believe that the share prices of various blue chip stocks are looking very attractive to buy at these levels. Some sources also mentions that OCIs – overseas citizens of India and other major mutual and hedge funds are accumulating some good size on shares with anticipation to cash in the long run.

We at are actually assuming that these are some good levels to buy shares and not sell. NRIs can get some real bargains and cheap prices on value stocks; and they can hope to make money in longer run. However this just an assumption from our trading desk, and the final decision to buy and sell or invest totally depends on the investor. The markets have been volatile in the past few weeks and have shown some real drama on the charts; however we hope that the dust settles in the coming weeks and we will get a chance to see more inflows in NRI Investment sector. The fundamentals are still intact and growth story of India is not yet over, thus we believe that there is still a lot of juice left in the Indian capital markets. Perhaps, we might not see investors making money with the speed at which they had made before when the sensex went from the 14000 level to 21000 levels. However, there is still lot of potential to make money provided the clients diversify their investments in right mix. They can invest in commodities, stocks (using their demat account), top performing mutual funds, insurance, futures, etc.

To conclude, the markets still look very promising and one should wait for the right time to enter with the right approach that too with a balance of some great investment products. After all only those people will make money who site great investment opportunities in India at the right time and invest with prudence.

Is NRI Investments in India increasing after the recent Stock Market fall?

The major Indian stock market indices like Sensex and Nifty have been exhibiting a sign of relief in the past few days. Obviously such a holding in the index strength is coming from US market performance, but much has to be credited to Indian mutual funds that are stepping in the markets at these levels of 1500 at the Sensex.The markets are no doubt bottoming out from these weak levels, but the real question is whether this move be consistent on the upward side. The NRI helpdesk managing funds for PIOs (person of India origin) and non resident Indians have seen a tremendous downfall in the equity business in the gone month, but now the momentum is slowly catching up. Most of the big stock brokers have seen a drop of almost 50% in their business in the gone one month, in both retail and institutional sales (primarily the NRI account opening has gone down).

Our Investment Advisors at are still bullish on India, and are still advising clients to buy Indian stocks with a dollar cost averaging strategy (this strategy is definitely risky, so it is advised to take a help of a certified professional). More importantly the clients are being advised to reshuffle their portfolios by adding more of debt funds like the government and corporate bonds also, besides shares only. The idea here is to play safe, with a balanced asset portfolio with a mix of top performing mutual funds and stocks, along with some solid debt instruments; this would bring strength to the portfolio by reducing extreme volatility. However one needs to be cautious by not putting all his money in to the markets at these levels, but what experts are saying is that one should only get into this market with a long term view of say 2-3 years a minimum.

The good news is that the coming earning declaration from the Indian companies, is expected to be good, and this would definitely boost the consumer confidence and by all means this would have a positive impact on the stock markets of India, especially on the large cap shares like: Reliance Energy, HDFC Bank, Canara bank, Balram Sugar, ICICI Bank, etc. Besides the corporate earnings, lot of other mutual funds that were sitting on cash are about to come out from shells and do some major buying in the exchanges, and this would again push the index up on the curve.

The idea would be here to invest in India with caution, and as soon as the market picks momentum one can go aggressive by putting in more funds in some good mutual funds through various routes like SIPs – systematic investment plans and MIPs – monthly income plans. However the bottom still remains that the Indian boom is not over yet, and if one really needs to encash this golden opportunity then one needs to get into the share market with a positive attitude accompanied with some serious investing smartness.