Banking & Investing Checklist for NRIs (2026)

A Step-by-Step Compliance, Tax & Investment Readiness Guide

For NRIs, most financial problems in India don’t arise from poor investment choices — they arise from incorrect banking setup, regulatory gaps, and tax non-compliance.

This checklist is designed to help NRIs:

• Set up banking correctly

• Choose the right investment mode

• Avoid PIS and repatriation issues

• Stay tax-compliant in India

• Invest with minimal operational friction

Use this as a pre-investment and annual review checklist.

SECTION 1: Residency & Compliance Check

Before anything else, confirm your legal status.

Residency Checklist

• Confirm you qualify as NRI under FEMA

• Update residency status with all Indian banks

• Re-designate resident accounts to NRE/NRO if status has changed

• Update KYC with:

  • Passport

  • Overseas address proof

  • Visa / residence permit

Failure to update residency status is a common cause of account freezes.

SECTION 2: Banking Structure Checklist (NRE, NRO, FCNR)

NRE Account Checklist

• NRE account opened for foreign income

• Used for investments and savings

• Interest confirmed as tax-free

• Linked to repatriation needs

NRO Account Checklist

• NRO account used only for India-sourced income

• TDS applicable on interest

• Track USD 1 million annual repatriation limit

• PAN linked and active

FCNR Account Checklist

• FCNR opened only if foreign currency exposure is required

• Used for fixed deposits (not transactions)

• Currency chosen based on income and future liabilities

• Interest confirmed as tax-free in India

SECTION 3: Taxation Readiness Checklist

Bank Interest Tax

• NRE interest: Not taxable in India

• FCNR interest: Not taxable in India

• NRO interest: Taxable with TDS

Investment Tax Readiness

• Understand TDS on mutual fund redemptions

• Track capital gains on direct equity

• Check DTAA applicability for country of residence

• Maintain records for foreign tax credit claims

Filing Checklist

• File Indian ITR if:

  • Refund is due

  • Capital gains need reporting

• Track Form 26AS and AIS annually

SECTION 4: Repatriation & Documentation Checklist

Repatriation

• NRE & FCNR: Fully repatriable

• NRO: Limited to USD 1 million per financial year

Documentation

• Maintain FIRCs for all large remittances

• Obtain Form 15CA when remitting from NRO

• Obtain Form 15CB (CA certificate) when required

• Retain tax payment proofs

Poor documentation is the biggest cause of delayed repatriation.

SECTION 5: Investment Mode Checklist (PIS vs Non-PIS)

Decide What You Want to Invest In

• Mutual funds

• Direct Indian listed shares

The investment mode determines compliance complexity.

PIS Checklist (Only for Direct Equity)

• Confirm direct equity investing is required

• Open PIS-linked NRE/NRO account

• Open PIS-approved Demat account

• Open PIS-mapped trading account

• Confirm only one PIS account exists across all banks

• Accept higher compliance and bank dependency

PIS applies only to direct equity shares.

Non-PIS Checklist (Mutual Funds)

• Confirm investment is in mutual funds

• No PIS account required

• No RBI trade reporting

• No restriction on platforms or folios

Most NRIs do not require PIS.

SECTION 6: SOA Mode Checklist (Recommended for Most NRIs)

SOA (Statement of Account) Mode

• Mutual funds held directly with AMC / RTA

• No Demat account required

• No PIS involvement

• Units held in investor’s name

SOA Readiness

• NRE or NRO account linked

• FATCA details completed

• Nominee details updated

• Email and mobile registered correctly

SOA mode offers the lowest operational friction for long-term NRI investors.

SECTION 7: Annual Review Checklist for NRIs

At least once a year:

• Update KYC with banks and AMCs

• Check NRE/NRO balances and usage

• Review FCNR maturity and currency allocation

• Verify PIS status (if applicable)

• Download tax statements and capital gains reports

• Review repatriation limits and plans

SECTION 8: Common Mistakes to Avoid

• Using NRO instead of NRE for investments

• Assuming PIS is mandatory for all investments

• Opening multiple Demat accounts expecting multiple PIS approvals

• Ignoring re-KYC requests

• Missing Form 15CA/CB timelines

• Mixing India income with foreign income

Summary: Ideal Setup for Most NRIs

Banking

• NRE for investments

• NRO for India income

• FCNR for FX risk management

Investing

• Mutual funds via SOA mode

• No PIS

• No Demat

• Lower compliance burden

Direct equity

• Only if intentional

• Requires PIS

• One PIS account across all banks