NRI Bonds for UK

UK NRIs can invest in government securities, corporate bonds, PSU bonds and other Indian bonds by using NRE or NRO accounts. NRIs can invest/trade in India’s GIFT City (IFSC) to access Indian and global markets with significant tax benefits.

UK NRIs can invest in government securities, corporate bonds, PSU bonds and other Indian bonds by using NRE or NRO...Read more

High returns

Earn fixed returns of up to 13.25%

Low investment

Start investing with as little as ₹1,000

Low risk

Invest in AAA–BBB rated bonds

No brokerage

0% brokerage or commission fees

Google Play Store

4.5_/5

15.6L Reviews

5.7cr+Satisfied Customers

₹3,064 CrsInvestment Enabled

100+Bonds

Invest as Low as ₹1000 & Getup to 13.25% Returns

High returns

Earn fixed returns of up to 13.25%

Low investment

Start investing with as little as ₹1,000

Low risk

Invest in AAA–BBB rated bonds

No brokerage

0% brokerage or commission fees

Google Play Store

4.5_/5

15.6L Reviews

5.7cr+Satisfied Customers

₹3,064 CrsInvestment Enabled

100+Bonds

Explore Bonds by Category

High Yield

INFOMERICS BBB

You Invest

₹9,984

Returns (YTM)

13.75%

You Get

₹11,929

Today

35 months

Best Capital Mar'29

You Invest

₹9,984

Returns (YTM)

13.75%

You Get

₹11,929

Today

35 months

Best Capital Mar'29

INFOMERICS BBB

CARE BBB-

You Invest

₹10,024

Returns (YTM)

13.65%

You Get

₹12,670

Today

29 months

Profitable, Listed NBFC with 50+% Capitalisation

You Invest

₹10,024

Returns (YTM)

13.65%

You Get

₹12,670

Today

29 months

Profitable, Listed NBFC with 50+% Capitalisation

CARE BBB-

IND BBB-

You Invest

₹10,116

Returns (YTM)

13.5%

You Get

₹12,602

Today

23 months

Unifinz Capital India Limited

You Invest

₹10,116

Returns (YTM)

13.5%

You Get

₹12,602

Today

23 months

Unifinz Capital India Limited

IND BBB-

NRI Bonds for UK

NRIs residing in UK can buy/sale bonds in India in accordance with the regulations specified by the RBI, FEMA and SEBI. They are the individual resident outside India who is a citizen of India. UK NRIs can invest in AAA rated PSU bonds, infrastructure bonds, capital gain bonds, corporate bonds and specified bonds through FAR route. RBI also allows NRIs to invest in T-Bills and governemnt securities through a RBI Retail Direct portal.

How to Buy Bonds through Paisabazaar?

Get up to 13.25% from bonds in 5 simple steps

Step 1: Login to your Paisabazaar account

Step 2: Select the Bonds

Step 3: Complete the KYC process

Step 4: Enter bank details

Step 5: Link your demat account

Invest Now

Indian Bond Investment Opportunities for NRIs

Administered by RBI and regulated by Foreign Exchange Management (FEM) (Debt Instruments) Regulations, 2019, NRIs residing in UK can invest in Indian bond market in the following basis, without any limit:-

On repatriation basis	On non- repatriation basis
Government dated securities (other than bearer securities) or treasury bills.	Government dated securities (other than bearer securities) or treasury bills.
Bonds issued by a Public Sector Undertaking (PSU) in India.	Listed non-convertible/ redeemable debentures issued in terms of Regulation 6 of these Regulations.
Debt instruments issued by banks, eligible for inclusion in regulatory capital.
Listed non-convertible/ redeemable debentures issued in terms of Regulation 6 of these Regulations.
Bonds issued by Infrastructure Debt Funds

NRIs residing in UK can make investments out of inward remittances from abroad through banking channels or out of funds held in NRE/FCNR(B)/NRO accounts.

Investment in Government securities by NRIs

NRIs can directly purchase government securties, SDLs, and T-bills through RBI Retail Direct account in both primary and secondary markets.
They can start investing by primarily opening NRE account via a Portfolio Investment Scheme (PIS) with an Indian bank.
The investment can be made on a repatriation & non-repatriation basis.
The interest payment by an issuer is credited to NRE/NRO account, as the case may be.

Fully Accessible Route (FAR): Govt Bonds/Gilts

RBI has created a separate channel, Fully Accessible Route (FAR), for foreign investors to invest without any quantity restrictions or investment ceilings. UK bases NRIs, Overseas Citizens of India (OCIs) and Foreign Portfolio Investors (FPIs) can invest in specified Indian government bonds (Gilts) through FAR to facilitate foreign capital inflow.

No investment caps or quantitative ceilings.
Offers free buy-sell access of government bonds as no prior approval is required.
Specific dated government securities are considered "FAR-eligible".
Major indices, including Bloomberg indices and J.P. Morgan's GBI-EM includes FAR bonds.

Investing in Capital Gain Bonds

UK based NRIs can also invest in capital gain bonds to claim deductions under Section 54EC of the Income Tax Act, on capital gains arising from the sale of land and/or building in India.

The main issuers of capital gain bonds in India are Indian Railway Finance Corporation Limited or (IRFC bonds), Rural Electrification Corporation Limited (REC bonds), and Power Finance Corporation Ltd (PFC Bonds).
Capital gain bonds are currently offering 5.25% p.a. coupon rate to its investors, annually.
NRIs should invest within 6 months from the date of the sale or property transfer to claim deductions. The maximum investment limit is Rs 50 lakh in a financial year.
These bonds are not traded on stock exchanges.
The principal amount is exempt from tax. However, interest income received from capital gain bonds are taxable.

Bond ETFs for UK Based NRIs

NRIs seeking to invest in AAA corporate bonds, PSU bonds and government securities can invest in Indian Bond ETFs. These bonds are considered low risk bonds as they have lower default risk and therefore offer safety in repayments.

Top choices include Bharat Bond ETF series (2030, 2031, 2032) and government securities ETFs (such as LIC Nifty 10 Year G-Sec ETF).
Investments can be made through a NRO or NRE bank account. The account should be linked to a PIS or Non-PIS (Portfolio Investment Scheme) Demat account.

How UK NRIs can Invest in India’s GIFT City

Located in Gandhinagar, Gujarat, GIFT (Gujarat International Finance Tec-City) IFSC is India’s international financial services center that offers various investment opportunities for UK NRIs. They can directly invest in USD/GBP without conversion by opening a Foreign Currency Account with an IFSC Banking Unit (IBU). The IFSC Exchanges operate for 22 hours a day helping NRIs to trade or invest efficiently from various time zones.

UK based NRI investors can buy corporate bonds issued by both Indian and foreign companies in currencies such as EUR, SGD, USD and GBP, through Gift City exchanges.
NRIs can invest in rupee-denominated bonds known as masala bonds issued by Indian companies through GIFT city centre.
Investors can also invest in green bonds that financially support environmentally sustainable projects like rain water harvesting, solar energy and sustainable infrastructure.

Tax Advantages in India

Long-term or short-term capital gains tax is exempt.
No Securities Transaction Tax (STT) does not apply in GIFT city centre.
No GST is charged on financial services rendered to NRIs.
Commodities Transaction Tax (CTT) is also further not applicable.

How NRIs Can Open Account to Invest in Gift City

NRIs can open a foreign currency account (IFSC Banking Unit (IBU) Account) by visiting an IFSC unit of a bank.
An IFSC Broker will help NRIs to get registered and trade on NSE IFSC or India INX with the help of the KYC documents - PAN card, Overseas Address Proof, Passport and tax residency certificates.
To start investing, NRIs need to transfer funds from an overseas bank account to the IBU account.

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