Why does NRI Desk show mid-market rates?

Mid-market rates are a neutral benchmark. The amount you actually receive is usually lower after bank or remittance provider spreads and fees.

Can I rely on the remittance comparison as a quote?

No. The comparison is indicative and helps shortlist providers. Always confirm the live quote in the provider app before transferring money.

Are NRI loan calculations exact?

The EMI formula matches the standard reducing-balance method, but banks may add fees, insurance, prepayment rules or eligibility conditions.

Sovereign Gold Bonds for NRIs: eligibility, rules and tax treatment

NRIs are generally not eligible to buy new Sovereign Gold Bonds (SGBs) at issuance. However, NRIs who hold SGBs purchased as residents can continue to hold them to maturity or sell on the secondary market. Interest is taxable; gains on RBI redemption after 8 years are exempt from tax for residents but the NRI position requires confirmation.

NRIs cannot buy new SGBs but can hold existing ones

RBI guidelines restrict NRIs from purchasing new Sovereign Gold Bonds at issuance. NRIs who become NRI while holding SGBs purchased as residents may continue to hold them and can sell on the secondary market (NSE/BSE) through an NRI demat account. The annual 2.5% interest is taxable. Check with your bank or broker for the current RBI position before acting.

Key points

New purchase not permitted for NRIs — RBI's SGB issuance guidelines restrict NRI purchases — confirmed NRIs should not apply at new issuances.
Secondary market available — Existing SGBs can be bought and sold on NSE/BSE through an NRI-compliant demat account during the bond's tenure.
2.5% annual interest is taxable — The 2.5% p.a. interest on SGBs is taxable as income from other sources — taxed at the applicable slab rate, with TDS in some cases.

NRI position on SGBs

At issuance: RBI guidelines restrict NRIs from applying for new SGB tranches. An NRI who applies may have the application rejected or refunded — check the current RBI notification for each tranche.

If you became NRI while holding SGBs: you can continue to hold the bonds to maturity. Interest is credited to your NRO account and is taxable. On RBI redemption at maturity, the capital gains tax treatment for NRIs should be confirmed with a CA — the tax-free redemption provision explicitly applies to resident individuals.

Secondary market: SGBs can be traded on NSE/BSE through your NRI demat account like any listed security.

Gold investment alternatives for NRIs

Gold ETFs: NRIs can invest in gold ETFs through an NRI demat account. Returns track gold prices and are taxed as capital gains.

Gold mutual funds (Fund of Funds): some AMCs offer gold FoFs — NRIs can invest subject to the same AMC restrictions that apply to equity funds.

Physical gold: NRIs can purchase gold jewellery in India using NRE or NRO funds. Repatriation of gold abroad is subject to customs rules at both ends.

Frequently asked questions

Can I buy SGBs from secondary market as an NRI?

Generally yes, through an NRI demat account — SGBs listed on NSE/BSE can be purchased as a secondary market transaction, which is different from participating in a primary issuance. Confirm with your broker before placing the order.

Is SGB interest taxable for NRIs?

Yes. The 2.5% annual interest is taxable as income from other sources at the applicable tax rate. TDS may be deducted — check with your bank or broker.

What is the alternative if SGBs are not available to NRIs?

Gold ETFs and gold mutual funds are the most accessible gold investment routes for NRIs. They are traded and taxed similarly to equity ETFs and debt funds depending on the holding period.