Can NRIs invest in direct plans?

As a Non Resident Indian (non US/non UK) can I invest in direct plans of mutual funds? If yes, how is the procedure different from a resident Indian investing a direct plan?
- Rohit

Yes, an NRI can invest in direct plans of mutual funds. An NRI will have to issue a rupee cheque from his NRE, NRO bank account in India. He may also send a Rupee cheque from abroad payable in a bank in India. However, for an NRI to invest, it is mandatory that he maintains a bank account in India.

Several financial institutions are not dealing with US-based NRIs because of Foreign Account Tax Compliance Act.

This article was originally published on October 23, 2015.