PIS vs Non-PIS Account for NRIs: What You Need to Know

For many NRIs, investing in India starts with a simple but important question, which type of account should you open? You’ll usually hear about two options: PIS and Non-PIS. While both give you access to the Indian stock market, the way they handle your money, especially when sending it abroad, is quite different.

Understanding this early on makes it much easier to plan your investments the right way. So, let’s see what each of these accounts is and how you should choose between them.

What is a PIS Account?

A Portfolio Investment Scheme (PIS) account is mainly for NRIs who want the flexibility to send their investment money and returns back abroad. In other words, it makes it easy to repatriate your money outside of India.

It is linked to an NRE (Non-Resident External) account and requires approval from the RBI. 

Key Features of a PIS Account

• Repatriation of funds is allowed

• RBI permission is mandatory

• Trades are monitored and reported through the bank

• Suitable for long-term investment planning

• Intraday and F&O trading are not permitted

This route is ideal if your goal is to invest in India while maintaining the ability to move your money overseas easily.

What is a Non-PIS Account?

A Non-PIS account is a simpler and more flexible option for NRIs who want to invest on a non-repatriation basis.

It is linked to an NRO (Non-Resident Ordinary) account, and unlike PIS, it does not require RBI approval.

Key Features of a Non-PIS Account

• No RBI permission required

• Lower operational costs

• F&O trading is allowed

• Intraday trading is still not allowed

• Investments are non-repatriable (with limits on transfers)

For NRIs looking for a smooth investing experience with fewer compliance requirements, this option is suitable.

Difference Between PIS and Non-PIS Accounts

When Should You Choose PIS or Non-PIS?

(A) Choose PIS account if:

• You want to repatriate your profits abroad

• You are investing using foreign income

• You prefer structured, regulated investment tracking

(B) Choose Non-PIS account if:

• You want a simpler and cost-effective setup

• You are investing income earned in India

• You want access to derivatives (F&O segment)

How the Transition Works for NRIs

Many NRIs already have investments in India before moving abroad. In such cases, a common approach is:

• Convert your existing resident demat account into a Non-PIS account to manage current investments.

• Open a separate PIS account for new investments on a repatriable basis.

This allows you to manage both types of investments efficiently.

Steps to Open a PIS Account

1. Submit required documents to your bank

2. Get approval from the bank and the RBI

3. Link the PIS account to your NRE account

4. Open a trading account with us

5. Start investing

Steps to Open a Non-PIS Account

1. Submit documents to your bank

2. Link the Non-PIS account to your NRO account

3. Open a Non-PIS trading account

4. Register with a Custodian Participant (for F&O activation)

5. Start investing

Documents typically required:

• PAN card

• Passport

• Address proof

• Bank proof

• Attestation by a local authority

Important Things to Keep in Mind

→ NRIs with an NRO account must register with a Custodian Participant (CP).

→ Under FEMA regulations, transfers from NRO to NRE accounts are capped at USD 1 million per financial year and generally require Form 15CA and Form 15CB for tax compliance certification.

→ Non-PIS transactions are not reported to the RBI, making them simpler to manage

Conclusion

Both PIS and Non-PIS accounts serve different purposes. There’s no one-size-fits-all approach here.

If flexibility and ease are your priority, Non-PIS is a great choice. If repatriation and structured investing matter more, PIS is the way to go.

Many NRIs actually use both accounts together to balance convenience and global fund movement.