Categories: NRI

NRI PIS V/S NON-PIS Bank Account : Complete Guide

NRI PIS V/S NON-PIS BANK ACCOUNT

Both these accounts allows investment in securities in India like mutual funds, equity stocks, IPOs, ETF, bonds, etc., by the NRIs and PIOs. NRIs can open these accounts with any broker available in India like ICICI Direct, IIFL Securities, HDFC Securities, Zerodha, Angel Broking, etc. however, it is to be noted that the investment purposes of both NRI PIS and Non-PIS accounts are different.

NRI PIS ACCOUNT

Portfolio Investment Scheme or PIS is an RBI scheme, initiated for investment by NRIs and it allows the Non-Residents and PIOs to shop for and sell shares on a repatriation basis in the Indian stock markets.

FEATURES OF NRI PIS ACCOUNT

  • The PIS bank account is used just for trading in stock markets in India
  • It is barely for NRIs for trading in equity segment and not for other investments.
  • Transactions during a PIS account are reported to RBI

NRI NON-PIS ACCOUNT

A Non-PIS account is basically a standard NRI savings bank account, which enables NRIs to take position in shares of Indian companies on a non-repatriation basis. Thus, such an account can be opened with any bank in India.

FEATURES OF NRI NON-PIS ACCOUNT

  • Transactions during this account don’t seem to be reported to the RBI.
  • An NRO non-PIS account will be accustomed invest in equity shares, mutual funds, IPOs, bonds, etc. on a non-repatriation basis.
  • It can be opened with any bank in India.

DIFFERENCE PIS BANK ACCOUNT & NON-PIS BANK ACCOUNT

FEATURES PIS BANK ACCOUNT NON-PIS BANK ACCOUNT
PURPOSE TO BUY/ SELL EQUITY SHARES ON A REPATRIATION BASIS TO BUY/ SELL SECURITIES AND MUTUAL FUNDS ON A NON-REPATRIABLE BASIS
RBI RULES THE SECONDARY MARKET TRANSACTIONS ARE REPORTED TO RBI THE SECONDARY MARKET TRANSACTIONS ARE NOT REPORTED TO RBI
SOURCE OF FUNDS CAN BE REPATRIABLE CAN BE REPATRIABLE AND NON-REPATRIABLE
ACCOUNT NRE SAVINGS ACCOUNT NRE AND NRO SAVINGS ACCOUNT
ACCOUNT USES IT CAN BE USED TO BUY SHARES IN THE STOCK MARKET ON A REPATRIABLE BASIS ONLY. IT CAN BE USED TO BUY EQUITY SHARES, MUTUAL FUNDS, IPOS, ESOP AND BONDS ON A NON-REPATRIABLE BASIS.

BEST BROKERS FOR NRIS IN INDIA

S. NO. BROKER BROKERAGE
1 ZERODHA 0.1% OR UP TO RS. 200 PER TRADE
2 ICICIDIRECT 0.50% – 1.25%
3 HDFC SECURITIES 0.75%
4 ANGEL BROKING AS PER TERMS AND CONDITIONS
5 AXISDIRECT 0.75%
6 IIFL SECURITIES 0.50%
7 KOTAK SECURITIES 1.00%
8 SHAREKHAN 0.50%
9 VENTURA 0.40%
10 ANAND RATHI AS PER TERMS AND CONDITIONS

The Indian market is growing by leaps and bounds with each passing day and folks are aggressively investing within the Indian stock exchange. Rajput Jain & Associates has been closely working with some of the leading brokers and banks like IIFL, Zerodha, SBM Bank, etc., since many years, and the same will be helpful to assist NRIs open NRI account online and make investment in India.

DEMAT ACCOUNT FOR NRIS

Open an NRI PIS/ Non-PIS and Demat accounts instantly and find the most effective investment advisory. you’ll be able to get detailed mutual fund advisory from experts at RJA. you’ll be able to visit CARAJPUT website from the Google to ask any questions associated with PIS Account, NRI account opening online and tax filing in India. To ask any questions associated with investment, click on the button below. One can also visit our blog and YouTube channel, in order to get more details on the same.

FAQs ON NRI PIS V/S NON-PIS BANK ACCOUNT

  1. Who can open NRE PIS account?

NRIs, PIOs and OCIs can open an NRE savings bank account with PIS permission. Once the PIS account is opened, NRIs can make investment within the Indian securities market on a repatriation basis.

  1. Can NRI have two PIS accounts?

As per RBI guidelines, an NRI is allowed to have a maximum of one PIS from a designated bank. The PIS approval is linked with an NRE/ NRO account reckoning on their repatriation requirements. Hence, NRIs can have just one NRE PIS account and NRO PIS account. In case of NRO mode of transactions, PIS approval need not to be taken.

  1. What amount of bank charges are leviable to an NRI PIS account?

PIS account opening charges varies from bank to bank. However, HDFC bank charges Rs. 1000 for a PIS account, in Axis Bank the charges are Rs. 1000, in Kotak Securities the charges are Rs. 1500, and in the SBI Cap Securities charges are Rs. 750.

  1. Which transactions don’t seem to be allowed under PIS?

Transactions not allowed using a PIS account are:

    • Purchase of shares using PIS account, can’t be sold under PIS account.
    • Buying of IPOs or shares as an India Resident.
    • Making of fresh subscription for IPOs as an NRI.
    • Investment in certain funs.
    • Investment in equity derivatives.
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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