Repatriation

Repatriation refers to the ability to transfer investment capital, income, and returns earned in one country back to another. For investors dealing with cross-border financial transactions, knowing whether their funds are repatriable or not is crucial. It determines how accessible their money will be across countries and what kind of accounts or investment routes they should use.

Types of Bank Accounts and Repatriation Rules

To manage investments and handle repatriation effectively, individuals can use specific types of bank accounts in India. The Non-Resident External (NRE) Account and the Foreign Currency Non-Resident (FCNR) Account both allow full repatriation of funds, including capital and interest. However, FCNR accounts hold deposits in foreign currency and are not eligible for investments in Indian mutual funds. On the other hand, the Non-Resident Ordinary (NRO) Account does not permit repatriation of funds abroad, limiting its use for international transfers. Additionally, repatriation is only allowed if the individual retains their eligible status at the time of the transaction.

How to Make Mutual Fund Investments

Investing in mutual funds can be done both offline and online, offering flexibility and ease of access. Offline investments require filling out a standard application form and submitting a cheque or draft in the name of the chosen fund. For online investments, application forms are available on the websites of mutual fund companies, distributors, and fintech platforms. Regardless of the method, completing Know Your Customer (KYC) and FATCA requirements is mandatory before any investment can be made.