What is Mode of Payment for NRIs to invest in MFs?
- The first step involves opening an NRE or NRO account. NRIs can invest on repatriable or non-repatriable basis using funds from the NRE or NRO accounts respectively.
- The NRI should complete KYC formalities by filling up a form and submitting documents. The papers have to be attested by an authorised official who can carry out in-person verification.
- A standard mutual fund application form needs to be filled by the NRI investor. FATCA and CRS declarations should also be made
- There are two ways of going about investing in Indian mutual funds—self or through a power of attorney. The power of attorney holder must be KYC compliant
- Payment can be made by cheque drawn on the NRE or NRO account. A foreign inward remittance certificate may have to be submitted to confirm source of funds
- Investments can be redeemed by following the redemption procedure mentioned by the fund. Redemption proceeds shall be credited to the respective NRE/NRO bank account of the investor