What is Repatriation and Non Repatriation?

NRIs can Invest in the Indian stock market based on repatriation and non-repatriation:

Repatriation vs Non-Repatriation

Repatriation:

• Definition: Repatriation allows NRIs to transfer money from their NRI bank account in India to their foreign bank account.
• Process: Funds are converted from Indian Rupees (INR) to the desired foreign currency.
• Account Type: The NRI bank account designed for repatriation is the Non-Resident External (NRE) account.

Non-Repatriation:

• Definition: Non-repatriation means that profits, dividends, or other income from investments made in India cannot be freely transferred to the investor's home country.
• Restrictions: There are limits and restrictions on repatriation of such funds.
• Account Type: The NRI bank account for investments on a non-repatriation basis is the Non-Resident Ordinary (NRO) account.