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PIS accounts are stock market trading accounts that require permission from the Reserve Bank of India (RBI) to repatriate funds without any limitations. Non-PIS accounts offer broader investment options, such as mutual funds and unlisted shares, and do not require RBI permission.
Yes, NRIs can use NRE and NRO accounts for both PIS and Non-PIS investments; however, they must follow specific rules. Depending on the repatriable basis, PIS investments can be linked to an NRE account (repatriable basis) or to an NRO account (non-repatriable basis) for each type. In contrast, Non-PIS investments can be opened in either account without any specific condition.
It totally depends on your financial goals. A PIS account is an ideal option for investing your foreign earnings in India. However, it comes with certain limitations such as lower flexibility, higher fees, and restricted transactions. On the other hand, a Non-PIS account is a good option if you want to invest your Indian income.
Yes, the returns from PIS and Non-PIS investments are taxable in India. The tax rules depend on the type of investment and your resident status. The tax on short-term capital gains from PIS investments is 15%, and on long-term capital gains, it is 10% on amounts exceeding INR 1,00,000.
To open a PIS or Non-PIS account, an NRI first needs to open an NRE or NRO account with a designated bank that offers these services. To open a PIS account, you need to obtain permission from the RBI and then open a separate PIS bank account. Further, to open a Non-PIS account, you need to open a trading and demat account, link it to your NRO account, and ensure compliance with FEMA regulations.
By Pankaj Shaw |Last Updated: December 22, 2025
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