The Quick Answer

If you're opening a Zerodha account as an NRI, you'll come across four terms: NRE, NRO, PIS and Non-PIS.

They describe two connected parts of your investment setup:

• NRE or NRO is the type of NRI bank account linked to your investments.

• PIS or Non-PIS is the route through which your investments in Indian securities are made.

The route you use depends on factors such as where your investment money comes from, whether you need repatriation, whether you already hold investments in India, and what you want to trade.

At Zerodha, the two routes are broadly structured as NRE-PIS and NRO Non-PIS. This guide explains NRE vs NRO, PIS vs Non-PIS, how the four fit together, and how Zerodha's NRI account setup works, so you can identify the route that applies to you.

NRE vs NRO: Which Bank Account Will You Use?

An NRE (Non-Resident External) account is used primarily for money transferred to India from your overseas earnings. The account is maintained in Indian rupees, and the principal and interest are generally repatriable, subject to applicable rules.

For NRI investing, an NRE account is relevant when you want to invest money brought in from abroad and retain repatriation of eligible funds.

NRO account

An NRO (Non-Resident Ordinary) account is generally used to manage money and income earned in India, such as rent, dividends, pension or other Indian-source income. NRO funds have different repatriation rules and limits.

At Zerodha, an NRO account is used for the NRO Non-PIS setup.

NRE vs NRO at a glance

The key point: funds cannot be transferred from an NRO to an NRE account. If you have both types, they remain separate.

For a deeper comparison and how to choose between them, see our full guide to NRE vs NRO accounts for NRI demat.

So, where do PIS and Non-PIS come in?

PIS (Portfolio Investment Scheme) is the route through which an NRI can invest in Indian listed securities using a PIS-enabled bank account. A PIS permission letter is required through the relevant bank, and transactions are reported through the bank.

Non-PIS is the alternative route, where the investment account is linked to an NRO bank account without a PIS permission letter.

At Zerodha, the practical difference includes how funds reach the trading account, the role of the bank, applicable charges and the segments available for trading.

In simple terms:

• NRE → PIS → Demat + Trading

• NRO → Non-PIS → Demat + Trading

These are the two setups most relevant when opening an NRI account with Zerodha.

How NRE, NRO, PIS and Non-PIS Fit Together

The easiest way to understand the four terms is to separate the bank account from the investment route.

Your NRE or NRO account determines where the investment funds are held.

Your PIS or Non-PIS route determines how the investment transactions are handled.

For Zerodha, the common setups are:

NRE-PIS

• You use an NRE bank account and a PIS-enabled investment setup.

• This is relevant when you want to invest through the PIS route using repatriable funds.

NRO Non-PIS

• You use an NRO bank account without a PIS permission letter.

• This route supports equity delivery and, at Zerodha, also allows intraday equity, F&O and BTST.

The distinction becomes much easier once you stop treating NRE/NRO and PIS/Non-PIS as four separate choices.

Is PIS Mandatory?

No, but it depends on what you’re investing in.

PIS is mandatory only if you’re buying and selling shares on the secondary market with forex from abroad and want to send your gains back overseas.

When you need PIS:

• Buying/selling listed equity shares (secondary market)

• Money comes from forex remitted from abroad (NRE account)

• You want to repatriate gains back home

When you don’t need PIS:

• Investing in mutual funds, bonds, or ETFs

• Trading F&O or doing intraday trading

• Buying IPOs

• Using rupees already in an NRO account in India

• Investing shares but keeping gains in India

The real decision:
You’re not choosing between “PIS” and “Non-PIS” as separate options. You’re choosing between two setups:

• NRE + PIS = Forex from abroad + want repatriation

• NRO + Non-PIS = Rupees in India + wider investment options

Which one fits your situation determines which route you use.

What should you consider before choosing?

1/ Are You Investing for the First Time or Converting an Existing Account?

Your situation is different if you're becoming an NRI after already investing in India.

If you already have a resident Zerodha account and become an NRI, you cannot continue using the resident account as-is once your residential status changes. Zerodha allows you to convert the resident account to an NRO account, or alternatively close the resident account and open a new NRI account.

Importantly, Zerodha's resident-to-NRI conversion is only to an NRO account, not an NRE account.

This means someone who is converting an existing resident Zerodha account is not making the same decision as someone starting from scratch.

Existing holdings also need to be considered when moving from a resident demat account to an NRI account. Zerodha provides separate transfer processes depending on the existing account, depository and NRI account type.

2/ Do You Need to Repatriate Your Investment?

Repatriation means moving eligible money or investment proceeds from India back to your overseas account.

If repatriation is important to you, the source of your investment funds and the account through which you invest become important considerations.

An NRE account is designed for funds that are generally repatriable, while NRO accounts have restrictions and applicable limits on repatriation.

This is one reason an NRI investing money earned overseas may consider an NRE-linked setup.

But repatriation alone does not determine your route. You also need to consider what you're investing in and which trading activities you want access to.

3/ Where Is Your Investment Money Coming From?

Think about the source of the money you plan to invest.

Money earned overseas

If you're transferring your overseas earnings to India for investment, an NRE account may be relevant.

Money already in India

If you're investing Indian-source income or money already held in India, an NRO account may be more appropriate.

This distinction matters because the bank account you use affects the investment route available to you.

If you're unsure whether your money should sit in an NRE or NRO account, start with the source of the funds rather than with PIS terminology.

4/ What Do You Want to Invest or Trade?

Your intended activity can narrow down the available route.

At Zerodha:

So if you only want to buy and hold listed equity, both routes can be relevant depending on your bank account and repatriation requirements.

If you want intraday equity or F&O, Zerodha's NRO Non-PIS route becomes particularly relevant.

The rules can also differ for other investment products. For example, Zerodha currently allows mutual-fund investing for NRIs from countries other than the USA and Canada, subject to its operational restrictions.

5/ Do You Already Have an NRE or NRO Account?

If you already have an NRI bank account, check which account you have before starting your Zerodha application.

For a new NRI account, Zerodha's application lets you choose between NRE and NRO and provide the corresponding bank details.

For PIS, the bank relationship is more specific. Zerodha's PIS setup requires the relevant NRE or NRO account to be with a supported partner bank and involves a PIS permission letter. For Non-PIS, Zerodha supports an NRO account with any bank.

This can therefore become a practical consideration if you already have a banking relationship in India and don't want to open another account.

6/ How Much Complexity and Cost Are You Comfortable With?

The two routes also differ in how the investment is administered.

With PIS, the bank is more involved. You need a PIS permission letter, funds are transferred to the PIS account before becoming available for trading, and the bank handles relevant reporting and TDS.

With Non-PIS, there is no PIS permission letter. Funds can be transferred from the NRO account to the trading account through the supported process, and Zerodha handles TDS on the account.

There are also differences in brokerage and bank-related charges. Zerodha currently lists a maximum brokerage of ₹200 per executed order for PIS versus ₹50 for Non-PIS, in addition to the other applicable bank and account charges.

So the choice isn't only about whether a route is technically available. The bank involvement, cost and transaction flow can also matter.

How PIS and Non-PIS Work With Zerodha

NRE-PIS

If you choose the NRE-PIS route, you'll need a PIS-enabled bank relationship and the required PIS permission. The bank communicates the relevant transaction information to Zerodha, and the investment funds flow through the PIS account.

Use this if:

• You’re earning money abroad and sending it to India

• You want full repatriation rights on your investment proceeds

• You’re willing to accept more trading restrictions

How it works: Your money sits in an NRE bank account and flows through a PIS letter issued by your bank. Zerodha’s brokerage is 0.5% or ₹200 per order, whichever is lower. You can only trade listed equities; no futures, options, or intraday trading.

Key restriction: Individual shareholding is capped at 5% per company; aggregate NRI holdings are capped at 10%, though some companies allow higher limits with approval.

Zerodha's NRO Non-PIS setup

If you choose NRO Non-PIS, your trading and demat account is linked to your NRO bank account. You don't need a PIS permission letter, and Zerodha supports equity delivery, intraday equity, F&O and BTST through this route.

Use this if:

• You already have Indian income (salary, rent, pension, dividends) that you want to invest

• You want trading flexibility (futures, options, intraday)

• You don’t need to repatriate principal

How it works: Your money sits in an NRO bank account linked directly to Zerodha - no PIS letter needed. Brokerage is 0.5% or ₹50 per order, whichever is lower. You can trade everything: equities, F&O, ETFs, mutual funds. Fund transfers are instant via net banking (PIS takes up to one business day).

Key benefit: No RBI approval required, no shareholding caps, lower brokerage, faster trading access.

Zerodha explicitly recommends Non-PIS for most NRI investors due to lower costs, faster transfers, and broader trading access.

For the full breakdown of PIS rules, eligibility, costs, and how to open a PIS account, see our complete guide to PIS for NRIs.

Which Zerodha NRI Account Setup Applies to You?

Your setup depends on where your money comes from, whether you need repatriation, and what you want to trade.

I already have a resident Zerodha account

Your setup: NRO-Non-PIS

If you became an NRI after opening a resident Zerodha account, you need to convert it to an NRI account. Zerodha’s conversion route is to an NRO Non-PIS account, not an NRE account.

I’m opening a Zerodha account for the first time as an NRI

Your setup: NRE-PIS or NRO-Non-PIS

If you want to invest through the repatriation route using an NRE account, the relevant setup is NRE-PIS. If you want to invest through an NRO account, the relevant setup is NRO-Non-PIS. Zerodha also allows both an NRE and NRO account to be mapped to the same Zerodha account.

I have an NRE account and want to invest in Indian equities

Your setup: NRE-PIS

For investing in listed Indian equities on a repatriation basis, Zerodha uses the PIS route. You’ll need a PIS permission through a supported bank, with the PIS account mapped to Zerodha.

I already have an NRO account

Your setup: NRO-Non-PIS

You can link an NRO account from any bank to Zerodha through the Non-PIS route. It supports equity delivery as well as intraday equity, F&O and BTST.

I want to trade F&O or intraday

Your setup: NRO-Non-PIS

Zerodha allows NRIs to trade intraday equity and F&O through NRO Non-PIS. These segments aren’t available through an NRE-PIS account.

I want to invest using repatriable funds

Your setup: NRE-PIS

If you’re investing through the NRE route and want the investment to be handled on a repatriation basis, the relevant Zerodha setup is NRE-PIS. PIS is specifically used for listed Indian equity investments on a repatriation basis.

I have both foreign and Indian income

Your setup: NRE-PIS + NRO-Non-PIS

You can have both routes if you need them. Zerodha allows an NRE and an NRO account to be mapped to the same Zerodha account, letting you keep the two funding and investment routes separate.

What If You Already Have a Zerodha Resident Account?

If you became an NRI after opening a standard Zerodha account as a resident, you’re in a different situation from opening a brand-new NRI account.

Your resident account cannot remain active. Under FEMA regulations, maintaining a resident demat as an NRI is a violation - your account must be converted or closed.

For the full conversion process, including which holdings move to NRO, how long it takes, and what documentation you’ll need, see our step-by-step guide to converting your resident Zerodha account to NRI.

How to Open Your Zerodha NRI Account

Once you’ve decided on your account type, the actual opening involves several moving parts: bank account setup, KYC, notarization (if outside India), document courier, and account linking.

If you’re opening from abroad, you can’t walk into a Zerodha office or your bank. This is where most NRIs hit friction - managing multiple intermediaries, getting documents notarized remotely, and ensuring everything syncs.

The easiest way to do this from abroad is via Rupeeflo.
We’ve partnered with Zerodha and help them onboard overseas client fully remotely.

Want to open your Zerodha NRI account remotely?

Rupeeflo handles the full process from your phone: digital notarization, document courier, bank coordination, and account activation. No flights to India, no running between branches.

All this happens via Rupeeflo app.