Premium Rupee Plan : NRI Investment Benefits
When you are an NRI, your options for investing your money in India can be limited. The fluctuating exchange rates and taxation from both, India and the foreign country, make investing not so profitable.
NRIs need to stay up-to-date with NRI-specific programs that banks, and government offers for investment and business. One such program is the Premium Rupee Plan. It allows you to invest in dollar currency and make your profits in the same. It is a tax-free return plan from the Indian government. Fluctuations in the currency exchange rate do not have an impact on this investment as the RBI would not default on the NRI investment with any bank.
Safety of Your Investment Matters
Premium Rupee Plan is simple, you transfer funds from your NRI account and the bank invests it with RBI, based on the currency exchange rate. When the investment duration is over, you get the interest calculated with fluctuated currency rate accounted for, by the RBI. Both the bank and the investor make a profit through this.
Using safe and sure-shot investment tools is crucial when investing with foreign currency. It is because the gains are high, but the risk can be higher. Premium Rupee Plan is one such instrument that is low-risk and guarantees a tax-free return, increasing your profit margin considerably.
As Opposed to NRE FD Plans
The Premium Rupee Plan is a far better option for NRI banking, as compared to NRE FD plans. The primary major difference is a high interest rate offered in the Premium Rupee Plan. In majority of the NRI investment plans, ROI can be around 3% on an average. On the other hand, in PRP, the rate is much more competitive, thus making the scheme profitable.
Investing Dollars in India is More Profitable
Fortunately, being an NRI comes with its own advantages. Not only are you making more money because of the exchange rates, but there are great options like PRP to invest in India. You can easily capitalize on your foreign earnings as you get tax exemption from the government and even higher rates of return compared to regular NRE FD schemes.
Instead of getting locked in NRE FD schemes where your return will be heavily regulated by the RBI, investing in a PRP is a better option for long-term. With higher interest rates and low risk, the Premium Rupee Plan is a smart choice in the current market.