NRI Financial Rules: What Non-Resident Indians Must Know About Money in India

When you live abroad but still have money, family, or property in India, NRI financial rules, the legal and tax guidelines that control how Non-Resident Indians handle money in India. Also known as NRI banking and investment regulations, these rules determine where you can put your cash, how much tax you owe, and what accounts you’re allowed to open. Ignoring them can cost you thousands in penalties, missed opportunities, or frozen assets. These aren’t suggestions—they’re enforced by the Reserve Bank of India and the Income Tax Department.

There are three main types of accounts that define your financial life as an NRI: NRE accounts, tax-free savings accounts where foreign income can be deposited and repatriated freely, NRO accounts, for income earned in India like rent or dividends, where taxes apply, and FCNR accounts, foreign currency deposits that protect you from rupee swings. Each has different tax treatment, withdrawal rules, and currency options. Mixing them up is a common mistake—putting rental income into an NRE account? That’s a red flag for the tax department.

Investing in India as an NRI isn’t the same as for residents. You can buy mutual funds, stocks, and even real estate—but not agricultural land. You can use the 15-15-15 rule for long-term wealth building, but only if you’re filing taxes correctly. PPF is off-limits unless you opened it before becoming an NRI. And if you’re thinking of a gold loan or home loan, your credit score and income proof must meet stricter standards. The Startup India loan scheme? You can qualify if your business is registered in India, but you’ll need a local address and a co-applicant who’s a resident.

Don’t assume your foreign bank or tax advisor knows what applies to you in India. Most don’t. You need to know the difference between tax residency and citizenship. OCI holders can live here forever, but they still follow NRI financial rules for money transfers and investments. Filing GST? Only if you run a business here. Claiming a refund? That’s possible, but only if you’ve filed returns on time and used the right account type.

What you’ll find below are real, practical guides written for NRIs who’ve been burned by bad advice or confusing rules. From how to repatriate funds without paying extra tax, to why your fixed deposit interest is taxed differently than your mutual fund gains, these posts cut through the noise. No theory. No fluff. Just what works, what doesn’t, and what the authorities actually check.