Non Resident Indian (Definition):-
Foreign Exchange Management Act (FEMA) defines a Non-Resident as a person who is not resident in India, a person resident outside India who is a citizen of India or is a person of Indian origin. The following persons can be classified as persons resident outside India.
A)Indian Citizens (Holding Indian Passport) Staying Outside India, Who Goes Abroad.
- For taking up employment
- For carrying on business
- On vocation
- For studying abroad
- Or for any other purpose in such circumstances as would indicate his/her intention to stay outside India for an indefinite or uncertain period.
- All persons mentioned above are NRIs for the purpose of opening and maintaining NRE, FCNR (B) and NRO accounts.
B)Person Of Indian Origin:-
A Person of Indian Origin (PIO) is a citizen of any country other than Bangladesh or Pakistan, if
- He at anytime held an Indian Passport; or
- He or either of his parents or any of his grand parents were citizens of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955) or
- The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b).
- PIOs are treated as NRI for the purpose of opening and maintaining NRE, FCNR (B) and NRO accounts with banks in India.
Please Note :-
- Students who go abroad for uncertain period are treated as Non Resident Indians.
- Indian citizens working abroad on assignments with Foreign Governments, Government Agencies or International/Multinational Agencies like UNO/IMF/World Bank etc. are treated as Non Resident indians.
- Officials of Central Government and Public Sector Undertaking deputed abroad on assignments with foreign governments/agencies/organizations or posted to their own offices including diplomatic missions abroad are also treated as Non Resident Indians.
- Crewmembers of Indian nationality or Indian origin employed by foreign airlines/shipping companies, if they are based at foreign ports and reside abroad in connection with their employment are also treated as Non Resident Indians. The crewmembers of foreign airlines/shipping companies who are shore staff of these companies and are posted abroad for duty on short term or long-term basis are also treated as Non Resident Indians.
- Visit our above ’NRI Banking link for further details on facilities for NRI/PIO.