SBI NRI Demat Account: Investing in India from Abroad

State Bank of India, SBI for short, offers Non-resident Indian (NRI) banking and investment accounts, including Demat accounts. Opening a Demat account can make it easier for NRIs to invest in the Indian stock market. If you are an existing SBI account holder or looking to open a new SBI account, read on to learn more about getting a Demat account at the bank.

📋 Complete Guide to SBI Demat Account for NRIs

Can NRIs open a demat account in SBI? Overview of SBI Demat Account for NRIs Features of the SBI Demat Account for NRIs Managing SBI Demat account from abroad How to open a Demat account in SBI for NRIs Opening an account in-person Online Process Documents Required FATCA Declaration SBI NRI Demat account charges Deposit funds to SBI Demat Account from abroad Withdrawing funds from SBI Demat Account Tax Consideration for NRIs investing in India Meet Wise: Simplify your financial life as an NRI

Can NRIs open a demat account in SBI?

Yes, NRIs can open a Demat account with SBI. Demat accounts fall within SBI Securities and can be opened from abroad if you have an existing NRI relationship with a bank. SBI is registered with NSDL and CDSL and offers investment vehicles like shares, debentures, bonds, IPOs and ETFs.¹

Opening an NRI Demat account does not require any RBI approval. However, NRIs must comply with FEMA and PMLA regulations. SBI Securities allows NRIs to open Demat accounts at SBI as a single accountholder or joint with another NRI or resident Indian.

SBI is a popular bank in India and offers Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts.

Looking for an easy way to fund an NRI account in India? Check out Wise 👉
Wise lets you send money to local Indian bank accounts with one low transfer fee and the mid-market exchange rate. Take a look at Wise to see how much you can save on your next transfer to your NRI account 🚀

Overview of SBI Demat Account for NRIs

A Demat account holds your electronic securities certificates when you purchase shares or investments. SBI offers a Demat Account for NRIs to hold the securities when investing in the Indian stock market. SBI offers two types of Demat accounts for NRIs:²

• Non-resident External (NRE) Demat Account: This account allows for funds to be sent to your residence country abroad, or repatraiable.
• Non-resident Ordinary (NRO) Demat Account - This account is non-repatriable which only allows for funds to remain in India if you withdraw from your account and not to be sent outside of India.

NRIs must have an NRE or NRO account to be eligible to open an SBI NRI Demat account.

Features of the SBI Demat Account suited for NRIs

SBI Demat account for NRIs offers the following features:³

• Investments in IPOs, stocks, mutual funds, and bonds of Indian companies.
• NRIs can choose to open either a repatriable or non-repatriable Demat account.
• Simple and quick transfers to and from your securities accounts.
• Investments may be used as collateral for loans.
• Accounts are enabled for IPO transactions and direct credit of non-monetary corporate benefits like bonuses and rights issues.
• Mobile app available on Google Play Store and iOS.

An NRI Demat account works in conjunction with a trading account and your NRI accounts.

Steps to manage and operate the Demat account from abroad

NRIs can manage the SBI Demat account online or through the SBI Securities mobile app. After opening a Demat account, NRIs will need to open a trading account in order to purchase the investments. NRIs can send money to an NRE and NRO account to fund the trading account from abroad. You will also need to open a Portfolio Investment Scheme (PIS) accountwhich permits NRIs to trade in Indian equities.

How to open a Demat account in SBI for NRIs

NRIs can open their SBI NRI demat accounts online from overseas or in-person if in India. In either case, you will have to complete all the KYC norms and adhere to FEMA and PMLA regulations.

Opening an account in-person

NRIs visiting India can open a Demat account in person at authorised SBI branches with NRI and Securities services. A SBI Securities representative can help walk you through the application process. It includes completing the Demat account opening form and providing two self-attested photocopies of the required documents. You can also open a PIS and trading account so that you can get started investing.

Online Process

NRIs can access the SBI Securities webpage and open their NRI demat account online. They can also visit the SBI NRI Home Page to open their Demat accounts.^4,5

Here are the steps to open an account online through SBI Securities:

1. Head to the SBI Securities official webpage.
2. Fill in the details asked for in the “Open an NRI Account” section.
3. Gather your documents and create PDFs.
4. A SBI Securities representative will contact you to complete the application process.

Here are the steps to open a Demat account through SBI online

1. Visit the official SBI NRI home page.
2. Complete your details.
3. Request a Call Back from a SBI Securities representative.
4. Complete the application process with support from the SBI Securities representative.

Documents Required for Opening SBI NRI Demat Account

Keep these documents ready when you want to open an SBI Demat account:⁶

• A passport-sized photo.
• Current valid passport.
• Visa or residence permit, if applicable.
• OCI or PIO card, if applicable.
• PAN card.
• Aadhaar card, if available.
• A cancelled SBI cheque leaf from NRE or NRO account.
• Latest SBI NRE or NRO account statement.
• Proof of address abroad or India address if applicable.
• Proof of tax residence.

Merchant Navy NRIs will need to provide additional documents like the latest contract letter and a Mariner’s declaration.

SBI does not have a minimum investment amount but you will need to provide a cheque to fund the account.

FATCA Declaration

US-based NRIs must sign and submit the FATCA declaration when opening an NRI Demat account. It is a mandated PMLA requirement to prevent NRIs from evading taxes while in their residence country.

SBI NRI Demat account charges

SBI Securities NRI demat Account opening charges are as follows:

Fee	Amount
Account opening fees	₹2,000
Trading Account Opening charges	₹850
NRI demat account maintenance charges	₹600
RBI approval for PIS (one-time)	₹500
PIS account maintenance charge	₹900
NRI account opening charges	₹2,500

There may be additional charges for a trading or brokerage account. Generally, SBI Demat account brokerage charges vary from one investment to the other. Here is the complete list of the brokerage charges.

Deposit funds to SBI Demat Account from abroad

To purchase investments that can be held in a Demat account, NRIs can send money from abroad to an NRE account, or if there are domestic income sources, from an NRO. The money can then be used to buy securities through the trading account.

Funds can be sent to a local Indian bank account through your resident bank abroad, online money transfer services or foreign exchange houses. Banks and foreign exchange houses can often charge more for international transfers with higher fees or an expensive exchange rate. Transfers are generally completed through SWIFT transfers which can take a few days to process.

If you want a fast and cheap way to send money to your NRI accounts in India, check out Wise. Wise lets you send money to local bank accounts with just one low transfer fee and the real mid-market exchange rate. That means no fees or extra mark-ups. A Wise transfer can arrive in a bank account within seconds on popular transfer routes.

Withdrawing funds from SBI Demat Account

To withdraw funds from a trading and Demat account, you will have to sell out of your current holdings. The funds can then be deposited in your NRE or NRO account. If you have a repatriable account, the funds can be sent abroad using SBI. Non-repatriable accounts will require the funds to stay within India.

Tax Consideration for NRIs investing in India

Realized income, including capital gains, earned through trading in India is taxable. Make sure that you consult a tax professional for filing any required taxes in India.

While income earned in India is taxable, NRIs must be mindful of their tax compliance in their resident country too. Some NRIs may enjoy the benefits of a Double Taxation Avoidance Agreement (DTAA) if their resident country has a DTAA arrangement with India. Consult a tax professional in your resident country to understand the implications of DTAA benefits.

Learn more in our complete guide to taxes for NRIs.

Meet Wise: Simplify your financial life as an NRI

Wise makes international transfers to India easy, fast and low-cost. With an award-winning app, you can send money directly to your NRE account in India from your home, work or on-the-go. Wise uses smart tech to make transfers secure and quick so you can move money the simple way.

NRIs living in supported countries can also sign up for the Wise multi currency account. It is one account where you can hold multiple currencies so you can send, spend and receive internationally. And with linked debit card so you can swipe like a local when traveling in India or globally.

Get Started with Wise 🚀

---

This article is not intended to be personalized financial, tax or investment advice. Consult a professional for tailored advice to meet your financial and investment goals.

Sources used for this article:

1. NRIs can open a demat account with SBI.
2. SBI NRI demat accounts and their features
3. Features and benefits of SBI NRI demat accounts
4. Opening demat account for NRIs through SBI Securities
5. Opening demat account for NRIs through the SBI home page
6. Documents required for opening SBI NRI demat account

Sources verified on 5 February 2024.