How NRIs can overcome bank challenges and manage their finances at home

Copyright © HT Digital Streams Limit all rights reserved. Money Anil Posts 5 Min Read April 16, 2025, 01:04 IST Opening Accounts, Management of Investments in Mutual Fund and Completing Digital Verifications from abroad can be very challenging for NRIs. (Beeld: Pixabay) Summary NRIs face numerous challenges in the management of banking and investments in India, including complex account setups, KYC compliance issues and UPI restrictions. Here are some ways to help you sail through the processes for millions of non-resident Indians (NRIs), and to remain financially attached to India, often involves the complex banking processes at home. It can be very challenging to open accounts, manage investments in mutual funds and complete digital verifications from abroad. We discuss some issues that NRIs experience with their stories in India and ways to overcome these challenges. PIS accounts NRE-PIs (portfolio investment scheme) and non-piss accounts are compulsory for NRIs who want to invest in Indian markets according to the regulatory guidelines. A PIS account linked to a NRE account is ideal for NRIs that prioritize the repatriation of funds. However, they require approval from both the Bank and the Reserve Bank of India (RBI), which often lasts up to two weeks or longer to activate. PIS accounts also have higher compliance costs and are subject to RBI Limits on Foreign/NRI shares in companies -that limit investments as a share hits its hijacking. Trading in futures and options are also limited. In contrast, non-piss accounts linked to NGO accounts are easier to open (no RBI approval required) and offer greater flexibility. However, they have limited repatriation options. NRIs can transfer from NGO to NRE accounts annually to $ 1 million, subject to documentation such as a signed request, FEMA statement, source of funds -proof, form 15CB (of a CA), and form 15CA (via the tax portal). Abhishek Amarani, a professional in Dubai, said: “It took me one year to get my NRE-piss account in place. After receiving login vouchers, they didn’t work for a few months. Vishal Dhawan, a Sebi-registered investment adviser and founder and CEO of Plan Aheaven Wealth Advisors, suggests that “When it comes to opening the account, it is strongly recommended that NRIS open all their accounts (bank, Demat and trade) while in India. Delays who regularly imposed the distance report. ” Also read: How NRIs can invest in Indian Mutual Funds Mutual Fund KYC editions KYC (Know Your Customer) Note is another challenge for NRS, especially if it is linked to investment in mutual fund. Aastha Verma, a working work in Dubai, faced important issues while trying to withdraw her investments in the mutual fund. “I had to scan my face for a KYC update, which looked simple enough,” she says. “But because I was in Dubai, the location restrictions blocked me to complete the process.” According to Dhawan, many NRIs discover that location -based restrictions prevent them from completing digital verification, and essentially closes them out of their own investments until they can personally visit India. “These challenges make the management of investments from abroad complicated,” says Verma. Dhawan said for pans labeled as NRI, mobile validation is not mandatory and e -mailing is sufficient for the processing of transactions. Mycams CEO Anuj Kumar said “the last date for the NRI KYC has been extended until April 30. Currently, NRIs have been exempt from a KYC case-case status for interoperability (KYC valid status).” Kumar noted that there is still no formal mechanism to upgrade a KYC status from ‘registered’ to ‘to’ validate ‘online. “The lack of clear guidelines makes us believe that the last date can extend, although it remains speculative. Participants in capital market have shared a set of recommendations with the regulator, and we expect some of those in the coming circular on NRI Kyc, which must be released in the near future,” he said. He highlighted two major challenges NRIs faced when he tried to complete Ekyc online. “First, regulations require a document for the proof of identity (POI) and a proof of address (POA) that can be ratified with the source. Today only Aadhaar provides APIs (application programs interface) that enables such validation. Other critical sources such as passport authorities – especially relevant to NRIs – have not yet made such APIs available,” he said. “Secondly, the circular that rules online Ekyc, mandate geotagging in India for the process of being valid. It effectively eliminates the possibility that NRIs Ekyc has completed from outside the country,” he added. Also read: How tourists and NRIs UPI can use without an Indian bank account to make the limitations of the UPI restrictions and the mobile number problems, a convenient payment option for residents, presents a challenge for NRIs, especially when linked to mobile numbers outside India. Although UPI now supports some international numbers, several major banks still need Indian numbers for verification. NRIs often have to keep their Indian numbers active to receive OTPs (one -time passwords). Dhawan suggests that NRIs should maintain a local Indian cellphone number for OTPs, standardize the status of the tenure to non-resident in the institutions, limit the number of accounts to reduce the complexity, and most importantly, consult tax and financial advisers who are well familiar with FEMA and income tax regulations. Also read: RBI enables NRIs to open Rupee accounts abroad with authorized banks documentation for joint accounts. Khushbu Nehita, the wife of Amarani and an NRI in Dubai, was unable to open a NRE-PIS account because the utility accounts and rental agreements were in her husband’s name. Dhawan from Plan Ahead Wealth Advisors said that a marriage certificate, combined with other ID and address voucher, should be sufficient. “However, many institutions still demand documents in the individual name of each spouse – a requirement that is especially challenging in cases where married couples often share domestic accounts and rental agreements,” he said. Insurance -related challenges in the insurance space, NRIs applying for term policies may be asked to submit credit reports from their country of residence, especially for higher value coverage. While it is part of the underwriting process to ensure strong caution, it can be challenging to obtain such reports, depending on the local credit bureau protocols. A spokesperson for the HDFC Life told Mint that such requirements were part of their underwriting process, especially for high value insurance policies, to ensure smooth demands later. Take off proactive planning – such as completing key settings during visits to India, holding an active Indian cellphone number and consulting financial advisors familiar with the NRI regulations – can make the process of managing finance in India smoother and more efficient for NRIs. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. 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