NRI
Full form: Non-Resident Indian
BankingAn NRI (Non-Resident Indian) is an Indian citizen residing abroad for 182+ days in a financial year. NRIs have special investment and banking rules in India: NRE accounts (repatriable, tax-free interest), NRO accounts (non-repatriable, taxable), and specific investment eligibility.
In detail
NRI bank accounts:nNRE (Non-Resident External): INR account, funds repatriable, interest completely tax-free in IndianNRO (Non-Resident Ordinary): INR account, funds not freely repatriable (up to USD 1M/year), interest taxable at 30% + surchargenFCNR (Foreign Currency Non-Resident): foreign currency account, repatriable, interest tax-freennNRI investments: equity MF (with US/Canada restrictions for FATCA), direct stocks, NRE/NRO FDs (very competitive rates), PPF (existing accounts allowed, no new accounts after becoming NRI), real estate.
Real-life example
Sunita moves to Singapore (NRI status). She converts savings to NRE FD at 7.5% (tax-free in India). On Rs 20L: earns Rs 1.5L/year completely tax-free in India. In her NRO account she parks Indian rental income and pays 30% TDS on it.