An investment guide for NRIs

NRI and PIO, did meet the legal definition of one? NRI is an Indian non-resident, a citizen of India who now live abroad. PIO is a person of Indian origin, usually not a citizen of India, but a person of Indian origin. According to the Government of India, any person of Indian origin up to four generations is a PIO.

If you are an NRI, have an abundance of opportunities available for you to invest and grow your money. That should not be overlooked is the option provided by India's banking system. NRI many want to send money to India, this is the practice of sending money earned abroad back to their country of origin. Remittances to Mexico have increased from $ 2.1 million in 1990-1991 to USD 55.06 billion in 2009-2010.

Now it's much easier to send money to India. Earlier this was done through electronic means or by demand draft. Today many banks offer money transfer services that are incredibly useful when you want to send money to India. NRI bank account is essentially an account opened in India, an NRI. It is a wonderful tool for India's banking system of the needs of NRI banking in India and abroad. NRI bank accounts are divided into three additional account, NRE, NRO and FCNR. RN and the NRO are the two accounts denominated in rupees. The RN receives funds from outside India and is fully repatriable while the NRO is not brought back and get the funds generated in India. FCNR accounts can be opened in 5 different currencies, U.S. dollars (U.S., Australia and Canada), sterling, euro and Japanese yen.

As a NRI, placing your money in a Bank NRI is a means of diversification, allowing you to keep the funds in other investments besides India. In addition, the NRI bank account can serve as a means to minimize the risk of fluctuation in currency rates by maintaining a certain amount in Indian rupees in the case of a fall in the dollar. You can compare interest rates in India and in foreign countries, and decide that the investment would produce the best results.

You can invest your money on deposit in banks in India. As with bank accounts fully developed, these deposits can be NR (E) RA and FCNR. NR (E) RA deposits are in the currency of India, while FCNR is in 5 currencies as mentioned above. Thanks to the vigilance of the RBI (Reserve Bank of India), rest assured that your hard-earned wealth will be safe in an Indian bank deposit, and will suffer a negligible impact of the turmoil in foreign economies. Banks in India will also not be so careless with their money to a foreign bank, due to tighter regulations in India.