Published Jul 11, 2025 4 Min Read

Introduction

For Non-Resident Indians (NRIs), managing wealth in India is more than just an emotional choice—it’s a strategic one. With India’s high-growth markets, currency advantages, and tax-friendly investment options, NRIs can build a powerful portfolio back home. But navigating RBI norms, FEMA regulations, repatriation limits, and cross-border tax implications requires a well-thought-out plan.

Whether you are supporting family, planning retirement, or building legacy wealth, financial planning in India offers security, flexibility, and long-term growth.

 

Looking for steady returns in India? 
Park your surplus funds in a Bajaj Finance Fixed Deposit with interest rates up to 7.30% p.a. for senior citizens. 

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Understanding India’s regulatory environment

Financial regulations for NRIs are governed by the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines. NRIs must be mindful of:

  • Types of accounts: NRE, NRO, and FCNR
  • Repatriation rules for principal and interest
  • Taxation on income earned in India

Complying with these regulations not only avoids legal complications but also unlocks better financial instruments aligned to your goals.

Importance of building rupee assets

Holding rupee-denominated assets provides two-fold benefits: protection against currency volatility and support for domestic expenses. NRIs can invest in:

  • Indian equity markets
  • Debt instruments like bonds or FDs
  • Mutual funds
  • Real estate and REITs

Maintaining rupee reserves also helps meet short-term expenses for family support, medical needs, or property upkeep.

 

Short-term plan in India?

Choose a cumulative FD with Bajaj Finance and grow your corpus with the power of compounding—ideal for 1 to 3-year goals. Invest now.

Also Read: Investment Tips for NRIs 

Asset allocation & diversification

Tax planning for NRIs in India

NRIs can benefit from Double Taxation Avoidance Agreements (DTAA), tax-free NRE deposits, and select exemptions under Section 80C. But you also need to be aware of:

  • Tax on interest from NRO accounts
  • TDS implications on mutual funds and property income
  • Capital gains on asset sale

Strategic tax planning helps NRIs retain more of their returns while staying compliant with Indian tax laws.

Retirement and legacy planning

NRIs often plan to return to India during retirement or support family from abroad. That’s where long-term financial planning helps:

  • Create a regular income stream with monthly interest FDs
  • Nominate family members on investment accounts
  • Set up a will that covers both Indian and foreign assets
  • Consider gifting and inheritance laws across both geographies

A robust plan ensures your wealth transfers smoothly and legally, without delays or disputes.

 

Planning retirement in India?

Choose a non-cumulative FD with monthly payouts and build a predictable income stream for your golden years. Check latest FD Rates

Why financial planning in India makes sense for NRIs

Let’s look at five reasons why financial planning is crucial for NRIs:

1. High Return Potential

India’s markets offer better returns than many developed nations—especially in equity, debt, and startup spaces. With the right advice, NRIs can make the most of this opportunity.

2. Currency Advantage

Invest in rupees, earn in rupees, and benefit when converting back to your home currency. A favourable forex rate can amplify your returns.

3. Tax Benefits

Enjoy tax-free returns on NRE accounts and exemptions on capital gains through smart planning. DTAA ensures you’re not taxed twice.

4. Direct Access to Indian Markets

Planning opens access to mutual funds, FDs, bonds, and real estate—allowing you to tap into India’s booming economy.

5. Portfolio Diversification

Having investments in multiple geographies and asset types protects you from market volatility, inflation, and geopolitical risks.

Also Read: Pension Plans for NRIs in India

Conclusion

Financial planning in India helps NRIs secure long-term goals, reduce tax burdens, and maintain strong ties with their home country. Whether you're planning retirement, supporting your family, or building generational wealth, a well-structured approach gives you both peace of mind and profit potential.

And while you map your future, make your idle funds work harder. Explore high-interest Fixed Deposits from Bajaj Finance—a secure and rewarding option tailored for NRI investors.

 

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator
FD CalculatorSukanya Samriddhi Yojana CalculatorPublic Provident Fund Calculator
RD Interest CalculatorEPF CalculatorGratuity Calculator

Frequently Asked Questions

What are the limitations of financial planning?

Financial planning cannot predict unforeseen events like sudden market crashes, global crises, or health emergencies. Even with detailed planning, income changes or shifting goals may require frequent revisions. Additionally, inflation, changing regulations, and emotional decision-making can affect outcomes. Financial planning is a guide, not a guarantee, and it needs flexibility and regular updates.

What is the safest investment option for NRIs in India?

Fixed Deposits with reputed banks and NBFCs like Bajaj Finance are one of the safest options for NRIs. They offer assured returns, flexible tenures, and minimal market risk. Bajaj Finance offers up to 7.30% p.a. returns. Open FD

What are NRI not allowed to invest in?

NRIs face several restrictions while investing in India:

  • Prohibited Sectors: No investments allowed in gambling, lottery, betting, railways, military, or atomic energy.
  • Investment Limits: Capped at 10% of a company’s paid-up capital (extendable to 24% with a special resolution).
  • Instruments: Cannot invest in currency derivatives, commodities, or do intraday trading.
  • Mutual Funds: NRIs from the US and Canada may face scheme-specific restrictions.
  • Sovereign Gold Bonds: Cannot make new investments but can hold or redeem existing ones.
  • Accounts & Compliance: Must use NRE/NRO accounts and, for stock investments, a Portfolio Investment Scheme (PIS) account.
  • Taxation: Investments are subject to applicable Indian tax laws.

 

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Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals. 

You can use the Bajaj Finserv App to: 

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  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
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Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.