Is PIS Account Mandatory for NRIs? Rules, Charges & How to Open (2026)
Neha Navaneeth
Marketing & Content Associate
Investment
NRIs who want to buy listed shares on Indian stock exchanges using their NRE account - and repatriate the returns - need a PIS account. That's the short answer.
But there's a lot of confusion around when PIS is actually required, what the 2020 RBI circular changed, what it costs, and how to open one without going back and forth with a bank for weeks. This guide covers all of it, as per current rules.
What Is a PIS Account for NRIs?
PIS stands for Portfolio Investment Scheme. It is an RBI-regulated banking facility that allows NRIs to buy and sell shares and convertible debentures listed on Indian stock exchanges, using their NRE or NRO savings account.
Every trade made through the PIS route is automatically reported to the RBI by your bank. This is what makes it the compliant, repatriable path to investing in Indian equities.
There are two types:
NRE PIS - for investments funded by foreign income, where you want to repatriate returns abroad
NRO PIS - for investments funded by Indian income (rent, dividends, etc.), where repatriation is restricted
Most NRIs use the NRE PIS route.
Is PIS Required for NRI Mutual Fund Investments?
No. PIS is not required for mutual funds.
This is the most common point of confusion. Here's the exact scope of PIS:
PIS is required only for:
Buying and selling listed shares (equity delivery) on Indian stock exchanges via your NRE account
PIS is NOT required for:
Mutual funds
F&O (futures and options)
IPO subscriptions
ETFs
Bonds and sovereign gold bonds
NRO account trades
Off-market transfers
Intraday trading (which NRIs are not permitted to do anyway)
If you're investing in mutual funds or applying in IPOs, you don't need a PIS account at all. Those transactions go through a separate route and don't fall under RBI's PIS reporting mechanism.
What Changed in 2020 - Was PIS Discontinued?
No, PIS was not discontinued.
Here's what actually happened: RBI issued a circular in 2020 that streamlined the NRI investment framework and merged certain reporting requirements. The PIS route itself remains fully active and mandatory for NRE-account-based equity delivery trades.
If you've seen anything suggesting PIS was scrapped, it's either outdated or misread. As of 2026, PIS permission is still required to trade listed shares through your NRE account on Indian exchanges.
Is PIS Mandatory for NRIs?
It depends on what you want to do:
If you want to... | PIS required? |
|---|---|
Buy listed shares via NRE account and repatriate returns | Yes |
Buy listed shares via NRO account (non-repatriable) | No |
Invest in mutual funds | No |
Trade F&O | No |
Apply in IPOs | No |
Buy bonds or SGBs | No |
The short version: PIS is mandatory only if you're doing equity delivery trades on Indian exchanges through your NRE account. Everything else - including the non-PIS route via NRO - is outside PIS.
NRE PIS vs NRO (Non-PIS) - Which Route Is Right for You?
Feature | PIS Route (NRE) | Non-PIS Route (NRO) |
|---|---|---|
RBI permission | Required | Not required |
Repatriation | Allowed | Not allowed |
Allowed instruments | Listed shares and convertible debentures | Listed equities, F&O, mutual funds, bonds |
RBI reporting | Full reporting by bank | Minimal |
Fees | Higher (bank reporting fees apply) | Lower |
Intraday trading | Not allowed | Not allowed |
If you want to bring your returns back to your overseas account, PIS is the route. If you're fine keeping returns in India or reinvesting them, the non-PIS (NRO) route is simpler and cheaper.
Rules and Limits Under PIS (2026)
An NRI can hold a maximum of 5% of the paid-up capital of any single company through the PIS route. The aggregate limit across all NRIs combined is 10%.
You can only have one active PIS account at a time, mapped to one designated bank.
That PIS bank account can be linked to only one broker.
Intraday and margin trading are not permitted under PIS.
Sector restrictions apply - you cannot invest through PIS in chit funds, agricultural companies, or certain sensitive industries.
All transactions are automatically reported to RBI by your bank.
How to Open a PIS Account: Step-By-Step for NRIs
How to Open a PIS Account: Step-by-Step
Confirm your NRI status - have your passport, overseas address proof, and PAN card ready.
Open an NRE savings account with an RBI-authorised designated bank (HDFC, ICICI, SBI, Axis, Kotak, etc.).
Apply for PIS permission - fill in the bank's PIS application form, submit your KYC documents, and specify the broker you want to link. The bank submits this to RBI on your behalf.
Receive your PIS Letter - once RBI approves, the bank issues a PIS permission letter. This is the document your broker needs to open your NRI demat and trading account. Processing time varies by bank - typically 1–3 weeks.
Open your NRI demat and trading account with a SEBI-registered broker, and link it to your NRE PIS bank account using the PIS letter. If you're opening with Zerodha, Rupeeflo handles the full demat setup remotely: notarization, courier, and onboarding included.
Start trading - only after this entire chain is in place should you begin buying or selling shares.
Note:
You can open only one PIS account that is mapped to any one broker.
You cannot change your PIS bank without closing the current arrangement first and starting fresh with a new one.
The PIS letter is issued by your bank (on behalf of RBI) - not directly by RBI. You do not need to approach RBI yourself.
PIS Account Charges
Here's what PIS actually costs, beyond brokerage:
Account opening fees - varies by bank, typically ₹500–₹2,000 one-time
Annual maintenance charges (AMC) - typically ₹500–₹2,500 per year depending on the bank
Transaction/reporting fees - banks charge a per-transaction fee for RBI reporting, typically ₹25–₹100 per trade
TDS on capital gains - deducted by the bank automatically on sale of shares (short-term: 15%, long-term: 10% above ₹1 lakh)
Forex conversion spread - applies when repatriating sale proceeds back to your overseas account
PIS trades are more expensive to settle than non-PIS trades precisely because of the additional reporting layer. This is the trade-off for repatriation.
FAQs
Can I switch my PIS bank later? Yes, but you have to close the current PIS arrangement first. You cannot have two PIS accounts simultaneously. The process involves getting a no-objection from the existing bank, transferring holdings, and applying fresh with the new bank.
Can I transfer or gift shares bought under PIS? No. PIS shares must be sold on the exchange. Off-market transfers and gifts require prior RBI approval, with limited exceptions.
Can I do intraday trading through PIS? No. NRIs are not permitted to do intraday trading in Indian markets regardless of the route.
What is a PIS AMC charge? AMC stands for Annual Maintenance Charge. It is the yearly fee your bank charges for maintaining the PIS account - separate from your demat AMC. It typically ranges from ₹500 to ₹2,500 depending on the bank.
Is PIS required for NRO account trades? No. The PIS requirement applies only to NRE account-based equity delivery trades. NRO account trades fall under the non-PIS route.
