Non Resident indians (NRI)

 A person who does NOT satisfy the following conditions is an NRI

1. He/she is in India for 182 days or more during the financial year OR
2. If he/she is in India for at least 365 days during the 4 years preceding that year AND at least 60 days in that year.

A Person of Indian Origin (PIO) means a foreign citizen (except a national of Pakistan, Afghanistan Bangladesh, China, Iran, Bhutan, Sri Lanka and Nepal) who at any time held an Indian passport.

1. OR who or either of their parents/ grand parents/ great grand parents was born and was permanently resident in India as defined in Government of India Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of any of the aforesaid countries (as referred above);
2. OR Who is a spouse of a citizen of India or a PIO.

A NRI can maintain three types of rupee accounts in India as mentioned below -

1. NRE: Non-Resident (External) Rupee Account
2. NRO: Non-Resident (Ordinary) Rupee Account
3. FCNR- B: Foreign Currency (Non -Resident)

 Non-Resident (External) Rupee (NRE) Account - NRE is a rupee bank account from which funds are freely repatriable. It can be opened with either funds remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable.

Interest credited to the NRE accounts is exempt from tax in the hands of the NRI.

Non-Resident Ordinary Rupee (NRO) Account - NRO is a Rupee (INR) bank account and can be opened with funds either remitted from abroad or generated in India. The amounts in such an account generally cannot be repatriable. However, funds in NRO accounts can be remitted abroad subject to/as per various directives in force at the time of repatriation.

Balances held in NRE accounts can be repatriated abroad freely, while funds in NRO accounts cannot be remitted abroad but have to be used only for local payments in rupees. 

Funds due to the non-resident accountholder which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts. 

All the Asset Management Companies (AMCs) in India don't allow NRIs especially from US and Canada because of the cumbersome compliance requirements under Foreign Account Tax Compliance Act (FATCA) in these countries. However, following fund houses do accept investments from NRIs from US and Canada. From the following list of asset management companies, some of them may ask for physical declaration from the investors when they invest in their schemes

1. Aditya Birla Sun Life Mutual Fund
2. Axis Mutual Fund
3. Bajaj Finserv Mutual Fund
4. Bandhan Mutual Fund
5. DSP Investment Managers
6. Edelweiss Asset Management
7. Groww Mutual Fund
8. HDFC Mutual Fund
9. ICICI Prudential Mutual Fund
10. IIFL Asset Management
11. ITI Mutual Fund
12. Kotak Mahindra Mutual Fund
13. Motilal Oswal Mutual Fund
14. Nippon India Mutual Fund
15. PPFAS Mutual Fund
16. Quant Mutual Fund
17. SBI Mutual Fund
18. Sundaram Mutual Fund
19. Samco Asset Management
20. UTI Mutual Fund
21. Whiteoak Mutual Fund