NRIs barred from small investment schemes

Non Resident Indian will have another jolt on them as the government has barred NRIs from making investment in small savings investment instruments such as Public Provident Fund (PPF), National Savings Certificate (NSCs) and Post Office Deposits.

As per earlier rules NRIs were allowed to Invest in NSCs, if they were purchased out of funds remitted from abroad or from the Non Resident External (NRE) Account or FCNR (B) deposits, the sale/maturity proceeds of such instrument wre allowed to be repatriated.

In case of PPF, NRIs can open account out of funds in their rupee denominated, non repatriable, non resident ordinary accounts. NRIs are even barred from investing in bearer securities such as Indira Vikas Patras or Kisan Vikas Patras. However the NRIs who have PPF or NSC investments will be allowed to hold them till maturity.