Understanding the Two Types of NRI Accounts

1. NRE Equity Cash (Non-Resident External) – Repatriable Account

• NRE Account Overview:
  • An NRI can open an NRE or NRO account.
  • The NRE account must be funded by a transfer from another NRE account or through foreign funds.
  • These accounts cannot be funded with Indian rupees.
  • Investment Restrictions: There are certain restrictions on investments made through NRE accounts.

2. NRO Equity Cash (Non-Resident Ordinary) – Non-Repatriable Account

• NRO Account Overview:
  • While funds in an NRO account are not easily repatriable, they can be transferred out of India up to $1 million per year, subject to certain procedures.
  • Investment Flexibility: NRO accounts offer more liberal investment opportunities compared to NRE accounts.