A Non Resident Indian (NRI) is an Indian citizen or a person of Indian origin who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an uncertain duration of stay abroad. A person shall be deemed to be of Indian origin if he/she or either of his/her parents or grandparents were born in undivided India.

To invest in Indian Mutual Funds, the NRI has to open any one of the following three kinds of accounts. He can open any of these  accounts through the banks who provide the facility. The three types of accounts are as follows:
Non-Resident (External) Rupee (NRE) accounts are Rupee accounts on a repatriable basis. They can be opened with either funds remitted from abroad or local funds, which can be remitted abroad.
Ordinary Non-resident Rupee (NRO) accounts are Rupee accounts and can be opened with funds either remitted from abroad or generated in India. The amount in such accounts is non-repatriable.
Fully Convertible Non-Rupee (FCNR) accounts are similar to the NRE account except that the funds are held in foreign currency like USD, GBP, etc.

Only OCBs and FIIs require prior approvals before investing in our schemes.

In case of open-ended mutual fund schemes, simply fill up the redemption slip and send it to our offices or Investor Service Centres of AMCs. The cheques are normally mailed to within 3 to 5 business days from the day of receipt of the redemption request.

In case of close-ended mutual fund schemes, the redemption slip has to be sold at the stock exchange where the scheme is listed through a registered stock exchange member.

The redemption proceeds will be paid by means of a Rupee cheque payable to the NRE account of the investor, or else by a US dollar draft drawn at the then current rates of exchange subject to RBI procedures, where investments have been made on a repatriation basis.

Where investments have been made on non-repatriation basis, redemption proceeds will be paid by means of a Rupee cheque payable to the investor's NRO account.

Accompanying the redemption proceeds is an updated account statement, a TDS certificate and a covering letter that mentions whether the funds were invested out of NRE/FCNR/NRO accounts. The tax on capital gain is deducted (as explained below) after taking into consideration indexation benefits wherever applicable.