Can NRIs Invest in India?

Investments by NRI’s in Mutual Funds can be made on a repatriable or on a non-repatriable basis, as preferred by the investor

Repatriable Basis

To invest on a repatriable basis, you must have an NRE or FCNR Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to Mutual

Funds to offer mutual fund schemes on repatriation basis, subject to the following conditions:
1.The mutual fund should comply with the terms and conditions stipulated by SEBI.
2.The amount representing investment should be received by inward remittance through normal banking channels, or by debit to an NRE / FCNR account of the non-resident investor.
3.The net amount representing the dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE / FCNR account of the investor, as desired by him subject to payment of applicable tax.

Non-Repatriable Basis

The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions:

1.Funds for investment should be provided by debit to NRO account of the NRI investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account.
2.The current income in the form of dividends is allowed to be repatriated.
No permission of Reserve Bank either by the Mutual Fund or the NRI investor is necessary.

Which schemes of Mutual Fund can NRI does invest in?

NRI’s can invest in all schemes of AMC Mutual Fund. In particular, the funds contained herein have not been and will not be registered under the United States Securities Act of 1933 (the "Securities Act") or under the securities laws of any state and the funds have not been and will not be registered under the Investment Company Act of 1940 (the "Investment Company Act").
Units in the funds may not be offered or sold within the United States or to United States Persons, except in a transaction not subject to, or pursuant to an exemption from, the registration requirements of the Securities Act and any applicable state securities laws and which would not require the funds to register under the Investment Company Act. The term "United States Person" shall have the meaning ascribed to such term in Regulations under the Securities Act.

Does an NRI need any approvals from the Reserve Bank of India to invest in mutual fund schemes?

No. As an NRI one does not need any specific approval from the RBI for investing or redeeming from Mutual Funds. Only OCBs and FIIs require prior approvals before investing in Mutual Funds.