NRI Banking & Repatriation Concepts

1. NRI Banking & Repatriation A comprehensive guide to managing finances for Non- Resident Indians.

2. Table of contents What You Will Learn NRI Bank Accounts: An Overview NRO vs. NRE Accounts Mutual Fund Investments for NRIs First Meeting with NRI Clients First-Time NRI: Going Abroad NRI Changing Countries Returning Home: Key Considerations Sacred Investments: Temples Enter India's Financial Markets Key Highlights of the Maharashtra Investment Reform Potential Market Impact: A New Wave of Capital Why This Matters: A Cultural and Economic Shift The Takeaway: Trust in India's Growing Markets Contact Us

3. What You Will Learn 1 2 3 Types of Bank Accounts for NRIs Key Features & Documentation Case Scenarios Explore practical examples for various situations. Understand the different banking options available. Learn about essential features and required paperwork.

4. NRI Bank Accounts: An Overview Account Type Currency Repatriable Source of Funds Taxation NRO INR No (mostly) Overseas & Domestic Interest taxable NRE INR Yes Overseas or NRE only Interest tax-free FCNR Foreign Yes Overseas Tax-free RFC Foreign Yes Post return to India Depends Gift City A/c Multi Yes Depends on structure Varies

5. NRO vs. NRE Accounts NRO Account Features NRE Account Features Rupee Account, non- repatriable (exceptions apply) Rupee External Account, freely repatriable Funds from overseas or other NRE accounts only Receives funds from overseas & India Cannot be credited from savings or NRO (exceptions apply) Similar to resident savings accounts Interest taxable in India, subject to TDS Interest earned is tax-free in India

6. Mutual Fund Investments for NRIs Account Usage Distinct Folios Both NRE & NRO accounts can be used for MF investments. Folios are separate for NRE & NRO; investments cannot be mixed. Redemption Taxation Post-redemption, funds return to the same distinct account. Taxation for NRE & NRO MF investments is the same, but TDS on redemption differs from resident accounts.

7. First Meeting with NRI Clients Savings Account Account Check Check for resident savings accounts; close or convert to NRO. Verify if both NRE & NRO accounts exist; if not, advise opening them. Folio Creation Resident Folios NRE/NRO folios cannot be created if resident folios still exist. Address resident investment folios by selling or converting to NRO.

8. First-Time NRI: Going Abroad Briefing session before departure. Close or convert resident folios to NRO. Open NRE & NRO accounts pre-departure. Ensure post-paid Indian mobile for OTPs abroad. Update KYC to reflect NRI status; use employer's address.

9. NRI Changing Countries No Need to Change Bank Accounts Update FTCA Declaration Update KYC Check Impact on DTAA Provisions (Double Tax Agreements) Ask Client to Consult CA/CPA in their new country of Domicile

10. Returning Home: Key Considerations Professional Consultation Tax & DTAA Consult CA/MFD/Financial Planners 6 months in advance to fix return date. Be mindful of host country taxes and harvest DTAA benefits. Account Closure Folio Conversion NRE & NRO accounts must be closed immediately upon return; refer to NRI Cell. Convert both NRE & NRO folios to resident folios.

11. Sacred Investments: Temples Enter India's Financial Markets The Maharashtra government has approved a landmark reform, allowing nearly 60,000 public trusts, including revered temples (Including Siddhivinayak, Shirdi) educational institutions, and charitable organizations, to invest up to 50% of their funds in market instruments like mutual funds, ETFs, bonds, and equities. This move marks a significant shift in investment strategy for these institutions.

12. Key Highlights of the Maharashtra Investment Reform 1 2 3 Broader Investment Scope Shift Towards Growth Notable Participants Previously, most trusts were restricted to low-yield instruments like fixed deposits (FDs), offering around 6% returns. The new policy diversifies their investment options significantly. This reform encourages a strategic transition from mere capital preservation to more dynamic, growth-oriented wealth creation strategies within a regulated framework. Prominent trusts such as the Shirdi Sai Baba Temple and Siddhivinayak Temple are now eligible to participate, bringing substantial funds into market instruments.

13. Potential Market Impact: A New Wave of Capital Unlocking Capital: The reform could inject an estimated ₹5,000–10,000 crore into Indian financial markets, significantly boosting liquidity. This influx of funds is expected to deepen market participation and provide a fresh impetus to various market instruments, contributing to overall economic growth and stability.

14. Why This Matters: A Cultural and Economic Shift Cultural Shift in Investing Temples, traditionally symbols of safety and preservation, adopting market instruments reflects growing trust in India’s dynamic capital markets. Validation of Mutual Funds If even centuries-old religious institutions are open to Systematic Investment Plans (SIPs), it reinforces confidence in mutual funds as reliable, long-term vehicles for wealth creation for all. Strengthening Capital Markets India’s Mutual Fund AUM has soared from ₹25.5 trillion (2020) to an anticipated ₹74.4 trillion (2025). Despite challenges like FII outflows, domestic investor participation ensures market resilience.

15. The Takeaway: Trust in India's Growing Markets This isn’t just a policy change; it’s a powerful signal of an evolving financial culture in India. The fact that revered institutions are ready to participate in equity and mutual funds highlights the trust and maturity of Indian capital markets. If temples, with their long-term vision, trust SIPs for the future, perhaps it’s time you considered them too for your investment portfolio.

16. Contact Us + (91) 93979 - 98765 www.wealthmunshi.com contact@wealthmunshi.com Address:4th floor, C9MH+GG9 T Hub, 2.0, Silpa Gram Craft Village, HITEC City, Hyderabad, Telangana 500032