The HDFC Bank NRI SmartInvest Account allows Non-Resident Indians (NRIs) to seamlessly manage their investments in India through a combination of:
Key Benefits & Features of NRI SmartInvest Account
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Features of the NRI SmartInvest Account
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Investment Options Through HDFC Securities
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Eligibility Criteria
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Documents Required
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Fees & Charges
Get access to a Portfolio Investment Scheme (PIS), Demat Account, and Trading Account.
Frequently Asked Questions
NRIs purchasing/selling securities on an NRO non-repatriable basis must obtain a one-time Unique Reference Number and open a sub-account called NRO Securities Account at the PIS designated branch. This account exclusively handles payments, receipts, capital gains, and TDS calculations under Schedule
Particulars |
NRE Account (Non-Resident External Rupee Account) |
FCNR(B) Account (Foreign Currency Non-Resident Account) |
NRO Account (Non-Resident Ordinary Rupee Account) |
Who can open an account |
NRIs and PIOs. Individuals/entities of Pakistan and Bangladesh require RBI’s prior approval. |
Individuals/entities of Pakistan and Bangladesh require RBI’s prior approval. |
Citizens of Bangladesh/Pakistan belonging to minority communities residing in India who have obtained LTV or whose LTV application is pending can open one NRO account with AD bank subject to conditions. Post Offices may maintain savings accounts subject to NRO account terms. |
Joint account |
May be held jointly by two or more NRIs/PIOs; also with resident relative on ‘former or survivor’ basis. |
May be held jointly by two or more NRIs/PIOs. |
May be held jointly with residents on ‘former or survivor’ basis. |
Currency |
Indian Rupees |
Any permitted foreign currency which is freely convertible |
Indian Rupees |
Type of Account |
Savings, Current, Recurring, Fixed Deposit |
Term Deposit only |
Savings, Current, Recurring, Fixed Deposit |
Fixed deposits period |
1 to 3 years; banks may accept deposits over 3 years as per asset-liability norms |
Terms from 1 to 5 years |
As applicable to resident accounts |
Permissible Credits |
Inward remittances (outside India), interest, transfers from NRE/FCNR(B), maturity proceeds of investments (if funded from inward remittance). Current income like rent, dividend, pension, interest. |
Inward remittances from outside India, legitimate dues, transfers from NRO accounts, rupee gift/loan by resident relatives (within limits). |
Inward remittances, legitimate dues in India, transfers from other NRO accounts, rupee gift/loan by resident relatives subject to limits. |
Particulars
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NRE Account (Non-Resident External Rupee Account)
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FCNR(B) Account (Foreign Currency Non-Resident Account)
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NRO Account (Non-Resident Ordinary Rupee Account)
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Who can open an account
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NRIs and PIOs. Individuals/entities of Pakistan and Bangladesh require RBI’s prior approval.
|
Individuals/entities of Pakistan and Bangladesh require RBI’s prior approval.
|
Citizens of Bangladesh/Pakistan belonging to minority communities residing in India who have obtained LTV or whose LTV application is pending can open one NRO account with AD bank subject to conditions. Post Offices may maintain savings accounts subject to NRO account terms.
|
Joint account
|
May be held jointly by two or more NRIs/PIOs; also with resident relative on ‘former or survivor’ basis.
|
May be held jointly by two or more NRIs/PIOs.
|
May be held jointly with residents on ‘former or survivor’ basis.
|
Currency
|
Indian Rupees
|
Any permitted foreign currency which is freely convertible
|
Indian Rupees
|
Type of Account
|
Savings, Current, Recurring, Fixed Deposit
|
Term Deposit only
|
Savings, Current, Recurring, Fixed Deposit
|
Fixed deposits period
|
1 to 3 years; banks may accept deposits over 3 years as per asset-liability norms
|
Terms from 1 to 5 years
|
As applicable to resident accounts
|
Particulars |
NRE Account (Non-Resident External Rupee Account) |
FCNR(B) Account (Foreign Currency Non-Resident Account) |
NRO Account (Non-Resident Ordinary Rupee Account) |
Who can open an account |
NRIs and PIOs. Individuals/entities of Pakistan and Bangladesh require RBI’s prior approval. |
Individuals/entities of Pakistan and Bangladesh require RBI’s prior approval. |
Citizens of Bangladesh/Pakistan belonging to minority communities residing in India who have obtained LTV or whose LTV application is pending can open one NRO account with AD bank subject to conditions. Post Offices may maintain savings accounts subject to NRO account terms. |
Joint account |
May be held jointly by two or more NRIs/PIOs; also with resident relative on ‘former or survivor’ basis. |
May be held jointly by two or more NRIs/PIOs. |
May be held jointly with residents on ‘former or survivor’ basis. |
Currency |
Indian Rupees |
Any permitted foreign currency which is freely convertible |
Indian Rupees |
Type of Account |
Savings, Current, Recurring, Fixed Deposit |
Term Deposit only |
Savings, Current, Recurring, Fixed Deposit |
Fixed deposits period |
1 to 3 years; banks may accept deposits over 3 years as per asset-liability norms |
Terms from 1 to 5 years |
As applicable to resident accounts |
Permissible Credits |
Inward remittances (outside India), interest, transfers from NRE/FCNR(B), maturity proceeds of investments (if funded from inward remittance). Current income like rent, dividend, pension, interest. |
Inward remittances from outside India, legitimate dues, transfers from NRO accounts, rupee gift/loan by resident relatives (within limits). |
Inward remittances, legitimate dues in India, transfers from other NRO accounts, rupee gift/loan by resident relatives subject to limits. |
Permissible Debits |
Local disbursements, remittance outside India, transfers to NRE/FCNR(B), investments in India. |
Local payments, transfers to other NRO accounts, remittance of current income abroad. Balances non-repatriable except up to USD 1 million per financial year. |
Local payments, transfers to other NRO accounts, remittance limited to USD 1 million per financial year subject to foreign exchange regulations. Funds can be transferred to NRE accounts. |
Repatriability |
Fully repatriable |
Fully repatriable |
Balances repatriable up to USD 1 million per financial year including other eligible assets. |
Taxability |
Income and balances exempt from Indian income tax and wealth tax |
Tax-free |
Income is taxable |
Loans in India |
ADs can sanction loans without limit subject to margins; loans are non-repatriable and for use in India. Repayment via deposits or inward remittances. |
Loans outside India possible against funds held in NRE/FCNR(B) accounts subject to margin. |
Loans subject to norms and margin requirements; loan amount non-repatriable; cannot be used for relending, agriculture, plantation, or real estate. |
Loans outside India |
Allowed against security of NRE/FCNR(B) funds |
Not permitted |
Not permitted |
Rate of Interest |
RBI guidelines |
RBI guidelines |
RBI guidelines |
Operations by PoA |
Restricted to withdrawals for permissible local payments or remittance to account holder. |
Restricted to withdrawals for permissible local payments, remittance of current income abroad or to account holder. |
Restricted to local payments and remittances subject to repatriability. |
Change in residential status |
Must convert to resident account or transfer funds to RFC account on return to India. |
Deposits continue till maturity or convert to resident account/RFC account on maturity. |
May be designated as resident accounts on return to India; resident accounts convert to NRO on becoming NRIs. |
An NRI (Non-Resident Indian) is an Indian citizen residing outside India.
A Person of Indian Origin (PIO) is a person residing outside India who is a citizen of any country other than Bangladesh, Pakistan, or any other country specified by the Central Government, who satisfies one or more of the following conditions:
Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955);
Who belonged to a territory that became part of India after August 15, 1947;
Who is a child, grandchild, or great-grandchild of a citizen of India or of a person referred to in the above clauses;
Who is the spouse of foreign origin of a citizen of India or the spouse of foreign origin of a person referred to in the above clauses.
A PIO will include an Overseas Citizen of India (OCI) cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955. Such an OCI cardholder should also be a person resident outside India.
What types of accounts does an NRI need to start investing with HDFC Securities?
NRE/NRO Regular Savings Account with any branch in India.
NRE/NRO E-broking Savings Account with designated Branch.
NRE PIS permission / NRO Securities (unique number) Account available through HDFC Bank.
NRE/NRO Demat Account with HDFC Bank.
NRE/NRO Trading Account with HSL.
Note: An NRE Account is required for investments made on a repatriable basis, whereas an NRO Account is required for investments on a non-repatriable basis.
The two Annexures in the PIS form are for filling details of shares held by the NRI customer in various capacities.
Annexure 1 (NRE)
Annexure 2 (NRO)
If an NRI is already holding PIS permission with another bank, can we open a fresh PIS permission?
No. An NRI must obtain a No Objection Certificate (NOC) from the previous bank. The NRE PIS permission will then be transferred to HDFC Bank. An NRI can hold only one NRE PIS permission.
Designated banks report all secondary market transactions to RBI daily.
Investment by a single NRI investor should not exceed 5% of the total paid-up equity and preference capital of the company.
The overall ceiling for all NRIs put together is 10% of the share capital, extendable up to 24% by a company’s special resolution.
Yes. NRIs can borrow against shares or other securities. The loan should be used to meet the borrower's personal requirements or for their own business purposes.
NRE (Non-Resident External) - Repatriable Demat Account
NRO (Non-Resident Ordinary) - Non-repatriable Demat Account
These Demat accounts link to the corresponding Savings Accounts (NRE linked to NRE, NRO linked to NRO).
Yes, NRIs can trade Futures and Options using rupee funds held in India on a non-repatriable basis, subject to SEBI limits. An NRO Savings and NRO Demat Account are required.
Tax Details |
Long Term Capital Gains (LTCG) |
Short Term Capital Gains (STCG) |
Futures & Options |
Base TDS Rate |
12.50% |
20% |
30% |
Surcharge @ 15% of Base Rate* |
1.875% |
3% |
(Based on income level) |
Education Cess @ 4% |
0.575% |
0.92% |
1.20% |
Total Tax Rate (Base + Surcharge + Cess) |
14.95% |
23.92% |
31.20% |
Notes: *surcharge will be applicable as per Total Capital Gain Slab wise
Short-term capital losses can be set off against both STCG and LTCG.
Long-term capital losses can be set off only against LTCG.
Capital losses can be set off only in the same financial year and cannot be carried forward.
Losses in Futures & Options are allowed to be set off against profits in derivatives for the financial year only; they cannot be carried forward.
Total tax rates on derivative income 30% + surcharge on the client’s income level per Income Tax guidelines.
For tax benefits, LTCG is taxed at 20% plus surcharge and cess, and STCG at 12.5% plus surcharge and cess.
No. Client can fill proxy form along with relevant documents and get the same notarised for appointing other person to manage trading activities. Here it is applicable only for non-US / Canada based clients.
Yes, USA & Canada-based NRIs and PIOs can open a Trading Account with us, provided the customer is present in India at the time of account opening.
No, shares cannot be transferred from an NRO Demat Account to an NRE Demat Account.
It is a designated NRE Savings Bank Account for routing receipts and payments related to the sale and purchase of shares, convertible preference shares, convertible debentures, warrants, or units under Schedule 3. The account is opened under the same Customer ID held with the bank.
NRIs can invest in the Indian stock market only through the Portfolio Investment Scheme (PIS).
All secondary market transactions must be reported to RBI within 24 hours.
Investments can be made on repatriable or non-repatriable basis. Separate bank and Demat accounts must be maintained accordingly.
Tax, if applicable, is deducted at source on profits.
NRIs can only carry out delivery-based trading.
No. NRIs must have the corresponding Savings Account category (NRE for NRE Demat, NRO for NRO Demat) to open Demat accounts.
HDFC Bank is a leading private sector bank with extensive PIS accounts across India. Our specialized PIS features and services offer smooth Portfolio Investment Scheme transactions.
If NRIs want to use foreign funds earned abroad, they should open the NRE category account.
If NRIs want to use local Indian income for investment, they should open the NRO category account.