Investment
6 mins
Is PIS Account Mandatory for NRIs? Rules, Charges & How to Open (2026)
Neha Navaneeth
Marketing & Content Associate
A PIS account is mandatory only if you want to buy and sell listed Indian shares on a repatriable basis, using money from your NRE account. You don't need it for mutual funds, IPOs, ETFs or bonds, and you don't need it if you invest in shares through an NRO account on the non-PIS route.
Below: when PIS applies, how it differs from non-PIS, which banks offer it, what it costs, and how to get your PIS permission letter from abroad.
Is PIS required for mutual fund investments?
No. SEBI's investor guide on NRI investments states that PIS permission is "not required for IPO, ESOPs, Rights Issue, MFs, ETFs, Bonds or Debt securities" (SEBI, Investments by NRIs).
You can invest in mutual funds directly from your regular NRE or NRO savings account. Keep your PIS account out of it: ICICI Bank, for example, says IPO and mutual fund purchases "should not be routed through a NRE Bank account which is linked to PIS" (ICICI Bank PIS FAQs).
Whether the investment can be repatriated depends on where the money comes from. Funds from your NRE account keep repatriation rights while you remain an NRI. Funds from NRO are non-repatriable beyond the NRO limits.
If you live in the US or Canada, check the fund house before you invest. Many AMCs restrict investors from these countries because of FATCA reporting, and the list of those that accept them changes. Our guide on whether NRIs from the US and Canada can invest in Indian mutual funds covers the details, and each AMC's own site has its current rules.
Is a PIS account mandatory for NRIs?
Only for one thing: buying and selling listed shares on the stock exchange with money you want to be able to take back abroad. SEBI's guide says PIS permission is required for buying and selling shares on a repatriable basis (SEBI). For everything else, you can skip it.
What you want to do | Do you need PIS? |
|---|---|
Buy listed shares with NRE money (repatriable) | Yes |
Buy listed shares with NRO money | No. Use the non-PIS route |
Mutual funds | No |
IPOs, rights issues, ESOPs | No |
ETFs, bonds, debt securities | No |
Futures and options | No. F&O is allowed only on a non-repatriable basis, through NRO |
Intraday trading or BTST | Not on PIS. Allowed on Zerodha's NRO non-PIS route since December 2025 |
Sources: SEBI, Investments by NRIs; Zerodha, PIS and non-PIS.
Why does PIS exist at all?
RBI caps how much of any listed Indian company NRIs can own: 5% per individual NRI and 10% for all NRIs combined, which a company can raise to 24% by special resolution. Your PIS bank reports each of your trades so these limits can be tracked. That reporting is the reason PIS covers only listed shares, the one product where ownership limits apply.
PIS vs non-PIS: which route should you use?
Choose PIS if you're investing money earned abroad and want to be able to send the gains back. Choose non-PIS if you're investing money you already have in India, such as rent, dividends or a resident savings balance moved to NRO, and repatriation isn't a priority. Non-PIS is cheaper and simpler to set up.
Here is how the two compare on Zerodha:
PIS | Non-PIS | |
|---|---|---|
Bank account | NRE (or NRO) with a PIS partner bank | NRO with any bank |
Money you can take abroad | Fully repatriable via NRE | Up to USD 1 million per financial year, with Forms 15CA/15CB |
Brokerage | 0.5% or ₹200 per order, whichever is lower | 0.5% or ₹50 per order, whichever is lower |
Bank charges | Up to ₹300 per contract note per trading day | None |
Annual maintenance | Up to ₹1,500 a year (charged by the PIS bank) | ₹500 + 18% GST a year |
Who deducts TDS on gains | Your PIS bank | Zerodha |
Intraday and BTST | Not available | Available |
Sources: Zerodha, PIS and non-PIS; Zerodha Varsity. Charges are as published by Zerodha; check your bank's current schedule.
Many NRIs run both: an NRE PIS account for long-term investing from foreign income, and an NRO non-PIS account for money already in India. If you're unsure which bank account to link, our guide on whether to link your demat to NRE or NRO goes through it.
Can you use your existing bank for NRE PIS?okay
Usually yes, if your bank offers PIS and works with your broker. Most large Indian banks are authorised to offer PIS, so the bank you already hold an NRE account with is often the easiest place to start.
The catch is broker compatibility. Zerodha currently links PIS accounts from six banks (Zerodha support):
HDFC Bank (Rupeeflo partner)
ICICI Bank (Rupeeflo partner, added by Zerodha in August 2025)
Axis Bank (Rupeeflo partner)
IDFC First Bank (Rupeeflo partner)
IndusInd Bank
Yes Bank
For the non-PIS route, your NRO account can be with any bank.
Two rules to know before you choose:
You can have only one PIS bank at a time. ICICI Bank's FAQ puts it plainly: "an NRI can have only one designated bank for PIS" (ICICI Bank).
Switching banks takes paperwork. You close the existing PIS account, then open the new one using a No Objection Certificate and a certified PIS holding statement from your old bank.
How to get your PIS permission letter
Your bank issues it, on behalf of RBI. You don't apply to RBI directly, despite what many guides say (SEBI; Zerodha support).
You: pick a PIS bank that your broker supports, ideally the one where you already hold an NRE account.
You: apply for PIS with that bank. If you don't have an NRE account there, the bank opens one first.
The bank: opens a separate NRE PIS account. All your share trades run through this account, and your regular NRE account stays separate.
The bank: issues your PIS permission letter.
You: open your NRI demat and trading account and link the PIS account to it. We help NRIs open a Zerodha NRI account this way from their phone, with document notarization and courier to India handled by us. Start your NRI demat account.
You: move money from your NRE savings account into the NRE PIS account and start investing.
How long the bank takes to issue the letter varies by bank. Ask yours for its current timeline when you apply.
What does a PIS account cost?
On Zerodha, a PIS setup costs up to ₹1,500 a year in bank maintenance, plus up to ₹300 for each day you trade, plus brokerage of 0.5% or ₹200 per order, whichever is lower (Zerodha). The per-day charge is the one that adds up: ten trading days a year can mean up to ₹3,000 in bank fees alone.
What you pay depends on:
Annual maintenance: charged by your PIS bank, up to ₹1,500 a year.
Contract note charges: charged by your PIS bank, up to ₹300 per contract note per trading day. Several trades on the same day share one contract note.
Brokerage: charged by your broker on each order.
Bank charges vary and change, so check your bank's current schedule of charges before you pick it. For a full comparison of NRI brokerage, see our guide to brokerage charges for NRI trading accounts.
How are your gains taxed?
Tax is separate from PIS charges, but your PIS bank deducts it at source when you sell. Short-term capital gains on listed shares are taxed at 20%. Long-term gains above ₹1.25 lakh a year are taxed at 12.5% (Zerodha). Surcharge and cess apply on top, and the tax treaty between India and your country of residence may change what you finally owe there.
Rules and limits under PIS
These apply whichever bank or broker you use (SEBI):
Ownership caps: up to 5% of a listed company's paid-up capital per NRI, and 10% for all NRIs combined, which can be raised to 24%. Once a company hits the NRI limit, NRIs can sell its shares but not buy them.
Delivery only on PIS: intraday trading and BTST aren't allowed on the PIS route. On Zerodha, both are available on the NRO non-PIS route.
F&O: allowed only on a non-repatriable basis, through NRO.
Currency derivatives: not permitted.
One PIS bank at a time: you can't hold PIS with two banks.
Trade reporting: your bank reports each contract note. Before buying, SEBI advises checking whether the company is on the NSDL or CDSL list of stocks near their NRI limit.
FAQs
What does PIS stand for?
Portfolio Investment Scheme. It's the RBI framework that lets NRIs buy and sell listed Indian shares on the stock exchange.
Is PIS required for an NRO account?
No. You can invest in shares from an NRO account on the non-PIS route, with any bank. Some partner banks also offer NRO PIS, but it isn't required.
What's the difference between a PIS account and a demat account?
A PIS account is a bank account, with RBI permission, that pays for your share trades. A demat account holds the shares. To trade on the PIS route you need three things: an NRE PIS bank account, an NRI demat account and a trading account.
How do I move money into my PIS account?
Transfer it from your NRE savings account to your NRE PIS account at the same bank. When you sell shares, the proceeds land back in the PIS account after tax is deducted, and you can move them to your NRE account and send them abroad.
Can I use a joint NRE account for PIS?
You can open an NRE PIS account in joint names, but the PIS permission covers only the primary holder. A joint holder who wants to trade needs their own NRE PIS account (ICICI Bank).
What happens to my PIS account when I return to India?
Once you're a resident again, tell your bank so it can redesignate your NRE and NRO accounts and close the PIS arrangement. Your NRI demat account also has to be converted to a resident one. On Zerodha this takes up to seven working days (Zerodha). Our guide on NRE account rules after returning to India covers the bank side.
I still have a resident demat account from before I moved. Is that a problem?
Yes. Once you become an NRI, you have to convert it to an NRI demat account. Our guide on why you must convert your resident demat account explains what to do.
