NRI Eligible Bonds

Features of NRI Eligible Bonds

Effective April 1st, 2020, NRIs are now eligible to invest in Government Securities, and to make the task easier, the RBI introduced a 'Fully Accessible Route', wherein the NRIs can invest in government securities in the form of bonds for NRIs.

Ideal for Low to Moderate Risk Investors

NRI eligible bonds are safer instruments than shares. Government securities ensure the lowest default risk. However, corporate bonds with high credit ratings from CRISIL, ICRA, or such reliable agencies are also safe options.

Wide Selection

Public Sector Units (PSU) and Capital Bonds, Secure Corporate Bonds and Non-Convertible Debentures (NCDs), Bharat Bond ETF & FOF, as well as Debt Mutual Funds, are all NRI Eligible bonds belonging to the Indian debt market.

Multiple Maturity Options

NRI investors have options to invest in NRI Eligible bonds for 3 months, 5 years, 10 years, and 30 years from FY 20-21, based on their cash flow requirements.

No Ceiling

NRIs are eligible to invest in government bonds for NRI in India without any ceiling limit in certain specific instruments.

Investment through Designated Branch

Investments in shares, bonds and other securities by NRIs can only be made through the stock exchange and/or a designated branch authorized by the RBI.

Permit for Non-Repatriable Investment

The Reserve Bank of India only gives permission to make investments on a non-repatriable basis for a span of 5 years. After that, the permission needs to be renewed.

Benefits of Investing in NRI Bonds

• Portfolio Diversification: Diversification is one of the major benefits of investing in government bonds, as it can help reduce the overall risk proposition within the NRI’s portfolio.
• High Liquidity: NRI Eligible Bonds can be sold easily in the secondary market, which makes them ideal for times of distress when the investor might need quick access to cash. Moreover, these bonds can also be used as collateral for borrowing funds.
• Emergency Funds: At the time of sudden cash needs, government securities can be sold at the secondary market. In the same way, it can be used as collateral to borrow funds in the market.
• Risk-Free Investments: Owing to careful and secure transactions, government bonds are safe and risk-free investments for NRIs.

Credit Rating of NRI Eligible Bonds

Different NRI Bonds India have distinct credit ratings. We encourage you to check our list of NRI Eligible Bonds and look for the credit rating badge on the top right corner for each listing.

Read on to learn how to decode credit ratings assigned by credit agencies like CRISIL, CARE, ICRA, and IND.

• AAA: highest degree of safety, lowest credit risk

• AA-, AA, AA+: high degree of safety, very low credit risk

• A-, A, A+: adequate degree of safety, low credit risk

• BBB-, BBB, BBB+ : Moderate degree of safety, moderate credit risk

• BB: Moderate risk of default

• B-, B, B+: high risk of default

• C: very high risk of default

• D: In default or expected to be in default

Investing in NRI Eligible Bonds

To invest in NRI Eligible Bonds with GoldenPi, all you need to do is follow three simplesteps.

• Sign up

  Register for an account on GoldenPi.

• Select a NRI Eligible Bond

  Choose from a wide variety of NRI Eligible Bond on GoldenPi to invest in.

• Monitor your Investment

  Keep track of your investment and receive notifications when it matures.