Fundamentals of investing in India — From NRE·NRO accounts to term deposits·NPS·BSE·NSE stocks, a guide for Korean expatriates

India's Foreign Exchange Management Act (FEMA) distinguishes between different types of accounts available to foreigners residing in India and Non-Resident Indians (NRIs). Among them, the most frequently encountered in practice isNRE(Non-Resident External) AccountandNRO(Non-Resident Ordinary) Accountno see. The two accounts only have similar names, but the rules for taxes, remittances, and withdrawal of funds are completely different, so you must first open them for different purposes to prevent funds from getting messed up later.

Practical points for expatriates to know

• In principle, pure foreigners (non-Indian nationals)NRE·NRO If you are not eligible to open an accountThere are a lot. The main targets are NRIs and Indian foreigners (PIO/OCI) living and working abroad while maintaining Indian nationality.
• Most expatriates of Korean nationality are classified as ‘Residents’ who reside in India on work visas and are used by commercial banks.Resident Savings AccountIt is standard to use . Be sure to check with your bank counter and company finance team regarding your choice of account type.
• If one of the couple is an Indian OCI holder, individual consultation is required as account options may vary.

The order of account opening in the first month of settlement (USIM → FRRO → Account → UPI) is:Checklist for your first 30 days in IndiaWe've covered this in detail, so if you check it before opening an account, you can reduce the need to return documents.

indianFixed Deposit (FD)It has the same structure as Korea's term deposit, but the interest rate level and tax treatment are different. Commercial bank FD interest rates are generallyRange of 5-7% per annum (varies depending on deposit period, bank, and time)It is formed in small and cooperative banks and certain campaign products may offer higher interest rates. For accurate interest rates, be sure to check the latest figures on each bank's website or the RBI's official website (rbi.org.in).

Things to keep in mind when depositing FD

• Interest payment methodYou can choose between lump sum payment (cumulative) and monthly/quarterly payment (non-cumulative) at maturity. Choose the latter for retirement-type funds that need to cover monthly living expenses, and choose the former if you're aiming for the compound interest effect.
• Interest income is subject to tax at source (TDS). Tax rates and exemption criteria are revised every fiscal year, so you should check with your bank before making a deposit.
• Early terminationA lower interest rate than the city contracted interest rate is applied, and a penalty is imposed depending on the bank. It is safer to decide when to use the funds and divide the deposit period (maturity ladder).
• If you spread your deposits to several banks,DICGC (deposit insurance) coverage limit (up to 5 million rupees in total principal and interest per bank as of 2026)You can receive coverage for multiple items within the range.

Which bank should I deposit it in?

Large banks frequently used by Korean expatriates include SBI (State Bank of India), HDFC Bank, ICICI Bank, and Axis Bank. State-owned banks (SBI) are strong in branch accessibility and stability, while private banks (HDFC, ICICI) are strong in online banking convenience and app completeness. When opening an accountPAN cardis required, and if PAN is not available, it can be temporarily replaced with Form 60, but it must be issued thereafter to smoothly report interest income and withdraw funds.

NPS(National Pension System)is a defined contribution pension system operated by the Indian government and is a means of forming low-cost retirement assets through diversified investments in stocks, corporate bonds, and government bonds. It is supervised by the Pension Fund Regulatory and Development Authority (PFRDA), and you can sign up through commercial banks, securities companies, post offices, etc.

Summary of Eligibility

• indian citizen: Ages 18 to 70 (as of 2026). Representative target.
• NRI (Non-Resident Indian): Registration available. You will need an Indian bank account (NRE or NRO) and PAN to operate your account.
• Pure foreigners (Korean expatriates, etc.): In principleIf you are not eligible for membershipThere are a lot. NPS is designed to focus on Indian nationals and NRIs, so foreign nationals who do not qualify for OCI/PIO are systematically restricted. Be sure to check pfrda.org.in for the latest regulations.

A practical alternative for expatriates

NPS If it is difficult to sign up, the following combination is realistic.

1. Surplus Rupees in IndiaTerm deposit (FD) or low-risk bond mutual fundmanaged to secure liquidity and interest income.
2. National pension, retirement pension, and personal pension (pension savings, IRP) in the home country (Korea) continue to be paid into domestic accounts, and a large portion of retirement assets are maintained in Korean won.
3. Extra funds excluding living expenses from salary in IndiaRegularly send money to Koreato coordinate exchange rates and asset allocation.

This method suits expatriates whose stay in India is limited to 3 to 5 years, and the process is simple as only the remaining accounts in India need to be organized when recovering assets after returning to the country.

Indian stock marketBSE (Bombay Stock Exchange, established in 1875)andNSE (National Stock Exchange, established in 1992)It revolves around two exchanges. The representative index of BSE isSENSEX (30 items), the representative index of NSE isNifty 50no see. Trading hours on both exchangesIndian Standard Time (IST) 9:15 AM - 3:30 PM (Monday - Friday)The payment date is T+1.

How do foreign individuals approach?

This is where there is a lot of misunderstanding. The QFI system for foreign individual investors was integrated and reorganized a long time ago, and is currently available for Indian stocks.direct investmentIn principle,Foreign Portfolio Investor (FPI)You must register as eligible. This is a burdensome process and cost for individuals to handle individually, and is usually utilized by institutions, funds, and asset managers.

Practical Recommendations

• Considering the procedures, taxes, and currency exchange risks of direct investment in stocks,Expatriates dispatched for 3 to 5 years invest in India-related ETFs and funds at Korean securities firms.Management is simpler.
• If you want to buy or sell individual stocks in India, be sure to check the latest regulations of SEBI (sebi.gov.in), company compliance policies, and tax expert advice.
• Indian listed stocksIncidental costs such as STT (Securities Transaction Tax), stamp duty, GST, etc. when sellingThis is attached. Profit and loss must be calculated by taking into account effective transaction costs in addition to the display fee.

What you must understand before deciding on an investment vehicleTaxation and remittance rulesno see. Interest, dividends and capital gains accrued in India are subject to tax withholding (TDS), and many of them are settled through income tax returns (ITR) at the end of the financial year.

Summary of key concepts

• Determination of resident under tax law: If you meet certain conditions, such as staying in India for more than 182 days in the relevant fiscal year, you become a tax resident.worldwide incomeReporting obligations may arise.
• Korea-India Double Taxation Avoidance Agreement (DTAA): An agreement to prevent double taxation in both Korea and India on the same income. Since relief measures such as tax deductions are available, you can take advantage of the benefits of the agreement by issuing a Tax Residency Certificate (TRC).
• PAN card required: Without PAN, withholding tax rates may be much higher than the standard tax rate, and documentation of funds withdrawal may be delayed. Be sure to obtain it at the initial stage of account opening.

Repatriation practice

• To exchange rupees into foreign currency and remit it to your home country, go to a commercial bank.Form A2You must submit (foreign currency purchase application form) and related documents (salary proof, tax proof, etc.).
• NRO Account-based fund withdrawal per fiscal yearUS$1 million limitis generally applied, and in this case, the tax accountant issuedForm 15CA/15CBis often necessary.
• The procedures for overseas remittance under one's name are relatively clear, but special funds such as real estate sale proceeds, inheritance, or gifts require prior reporting and separate documents, so consult with your bank's foreign exchange representative in advance.

The actual situation, such as rental-related fund flow and deposit return, isA practical guide to real estate in IndiaWe covered it together in . Since tax rates and limits are revised every year, please check the official data from the Indian Tax Service (incometax.gov.in) and the National Tax Service of Korea (nts.go.kr).

To summarize what has been done so far in actual execution order, it is as follows. This is a standard scenario for expatriates with a deployment period of 3 to 5 years, and adjustments may be necessary depending on individual circumstances (visa type, accompanying family, real estate contract, etc.).

1. Stage 1 — Infrastructure setup (1-2 months after entry)
   • Complete SIM opening → FRRO registration → Bank account opening → UPI linking in order. The procedure isChecklist for your first 30 days in Indiareference.
   • PAN Apply for card issuance. Apply online for NSDL or UTIITSL or use bank agency services.
   • After completing an individual consultation with a tax expert provided by the company, the individual's tax status (resident/non-resident) and reporting obligations are clearly identified.
2. Stage 2 — Securing liquidity and safe assets (3rd to 6th month)
   • Maintain liquid funds equivalent to 3-6 months' worth of living expenses in a savings account.
   • The remaining rupee isMaturity ladder with short-term and medium-term FDs(3, 6, 12 months spread) to secure both liquidity and interest income.
   • If you are traveling with family, plan to separate funds for purposes such as children's tuition and medical expenses into a separate account. Prepare for medical expensesGuide to using emergency medical services and hospitals in IndiaAlso check:
3. Step 3 — Move excess funds to home assets (after month 6)
   • Surplus salaries exceeding the required funds in India are regularly remitted to Korea to maintain the proportion of won-denominated assets.
   • India related in Korean securities company accountETF·FundBy indirectly securing exposure to the Indian market, you can benefit from growth without direct investment in India.
   • Once you decide to return home, at leastProcedures for organizing accounts and withdrawing funds from 3 to 6 months in advanceStart. There is no problem if you proceed sequentially with Form 15CA/15CB, tax settlement, and PAN remaining management.

Investment in India is better than ‘high rate of return’‘Safely maintain and recover assets with low risk’The emphasis on doing this suits the nature of dispatched work. In particular, it is much easier to manage tax and remittance documents at the time of occurrence.