Definations

Non Resident Indian (NRI): is an Indian Citizen who has migrated to another country, a person of Indian origin who is born outside India, or a person of Indian origin who resides permanently outside India. Other terms with the same meaning are overseas Indian and expatriate Indian . In common usage, this often includes Indian-born individuals (and also people of other nations with Indian ancestry) who have taken the citizenship of other countries.

Person of Indian Origin (PIO): a person of Indian origin who is not a citizen of India. For the purposes of issuing a PIO card, the Indian government considers anyone of Indian origin up to four generations removed to be a PIO; Spouses of people entitled to a PIO card in their own right can also carry PIO cards. This latter category includes foreign spouses of Indian nationals, regardless of ethnic origin. PIO Cards exempt holders from many restrictions applying to foreign nationals, such as visa and work permit requirements, along with certain other economic limitations.

Person resident in India: Under FEMA, a person is defined as a resident of India when the person has been residing in India for more than one hundred and eighty two days during the course of the preceding financial year and the person has come to or is staying in India either or taking up employment, carrying on business or vacation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period.

NRI account: �NRI account� is a popular connotation for Indian accounts opened for NRIs. The types of accounts that an NRI can open in India are NRE (Rupee Repatriable) FCNR (Dollar, Pound, Euro, Yens, Can dollars & Aus Dollars) & NRO (Rupee Non Repatriable). US residents may bear in mind that these accounts are not FDIC insured, the income may be subject to US Federal Income Tax and balances in excess of $10,000 may need to be reported annually to the US Department of the Treasury.

NRE Account: is a Rupee denominated account which is fully repatriable. Funds into this account will have to be received from outside India. You can open either a SB account (liquid account provided with a check book) or a Fixed deposit. The minimum period for an NRE fixed deposit is 12 months.

FCNR: accounts can be opened in five different currencies viz., US dollar, Pound, Sterling, Euro, Jap Yen, Canadian Dollar & Australian Dollar. They are in the form of fixed deposits only and the minimum period of deposit is 12 months.

NRO: account is a rupee denominated account which is not repatriable. This account is basically for your rupee funds generated in India. You can open either a SB account (liquid account provided with a check book) or a Fixed deposit.


Foreign direct investment (FDI): or foreign investment refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, other long-term capital, and short-term capital as shown in the balance of payments.

Reserve Bank of India (RBI): is the central banking institution of India and controls the monetary policy of the Indian rupee as well as US $30,210 crore (US$302.1 billion) of currency reserves (in 2011 dollars as of 2011 ).
 
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