You get a WhatsApp message. A friend recommends an investment app. The landing page looks slick. Returns seem attractive.
You're about to click "Download."
Stop.
In the past 18 months alone, over 30,000 Indians lost ₹1,500 crore to fake investment apps. A retired ship captain in Mumbai lost ₹11.16 crore through a fraudulent trading platform. An NRI from Canada was defrauded of ₹1.23 crore by someone he met at a religious gathering.
These weren't careless people. They were educated professionals who trusted the wrong platform.
The explosion of fintech apps targeting NRIs has created genuine opportunities. But it's also opened the door to sophisticated scams, hidden fees and compliance nightmares that can cost you years of savings.
Over the past 12 years by helping NRIs invest in India, we've seen every trick in the book. We've also helped dozens of clients recover from bad platform choices.
This checklist could save you lakhs. Maybe crores. And definitely months of stress.
Why Most NRIs Get This Wrong
Living in Dubai, London or New York, you're used to polished apps and smooth digital experiences. You expect things to work.
But India's financial regulatory landscape is different. What works in the UAE doesn't automatically translate here. An app that looks professional might lack basic compliance. A platform with celebrity endorsements might be a fraud.
👉 Tip: Never judge a financial app by its marketing budget. The slickest ads often come from platforms with the most to hide.
According to recent data, Bengaluru, Delhi-NCR and Hyderabad account for 65% of investment fraud cases. NRIs are particularly vulnerable because they can't easily verify claims or visit offices.
The stakes are high:
- Wrong currency handling can cost you 2-3% per transaction (or up to 2.5% markup on typical bank transfers).
- Missing repatriation documentation can trap your money in India
- Tax compliance mistakes can trigger penalties
- Poor customer support means issues go unresolved for months
Let's make sure you don't become a statistic.
The 12-Point Due Diligence Checklist
Before you download any investment app - even one recommended by friends - go through these 12 checks. Skip even one, and you're taking unnecessary risk.
1. Verify Regulatory Licenses (Non-Negotiable)
Every legitimate investment platform in India must be registered with either RBI, SEBI or both.
What to check:
- SEBI registration number (for mutual funds, stocks, bonds)
- RBI authorization (for banking, FDs, payments)
- AMFI certification (for mutual fund distributors)
- GIFT City IFSCA license (for international financial products)
How to verify: Go to SEBI's website and search their registered intermediaries database. Don't just trust what the app says - verify independently.
For example, Belong holds both PSP and broker-dealer licenses from IFSCA. You can verify this on the IFSCA website.
Red flag: If the app can't provide registration numbers upfront, or if you can't find them on regulator websites, walk away.
Also Read -RBI's New Rules for Investment - What Every NRI Must Know
2. Examine Security Infrastructure
Your financial data and money are at stake. Security cannot be optional.
Minimum requirements:
- Two-factor authentication (2FA)
- Biometric login support
- Bank-grade 256-bit encryption
- Secure payment gateways
- Regular security audits (ask for proof)
- Cold storage for client funds (where applicable)
Questions to ask:
- How is my financial data stored?
- Who has access to my information?
- What happens if there's a data breach?
- Is my money segregated from company funds?
According to Meta's 2024 report, scammers disrupted over 7 million fake accounts across Myanmar, Laos, Cambodia, UAE and Philippines targeting financial fraud. Many used sophisticated deepfakes of trusted figures to promote fake apps.
👉 Tip: Enable all available security features immediately. Yes, entering OTPs is annoying. But it's far less annoying than explaining to your family how you lost your retirement savings.
3. Understand Currency Handling and Forex
This is where NRIs lose the most money without realizing it.
Questions that matter:
- What exchange rate am I getting? (Compare with our USD-INR tracker)
- Are there hidden forex margins?
- Can I invest directly in USD or do I convert to INR first?
- How much do currency conversions cost me?
Most traditional platforms force you to convert USD to INR, invest, then convert back when repatriating. You lose 1-2.5% each way - a hidden 2-5% cost.
Platforms offering GIFT City USD fixed deposits let you invest in USD directly, eliminating this leak.
Red flag: If the app can't clearly explain forex costs in simple terms, they're probably hiding something.
4. Check Repatriation Clarity
Money going into India is easy. Getting it back out can be a nightmare if your platform hasn't handled documentation correctly.
Must-knows:
- Is the investment repatriable or non-repatriable?
- What documentation is required for repatriation?
- How long does the repatriation process take?
- Are there limits on how much I can repatriate?
For NRE accounts and repatriable investments, funds can be freely repatriated. For NRO accounts, there are annual limits.
Questions to ask:
- Has the platform successfully processed repatriations for other clients?
- Can they show you sample documentation?
- What happens if RBI rules change?
👉 Tip: Test the platform's repatriation knowledge before investing large amounts. Ask specific questions about Form 15CA/15CB requirements. If they seem confused, that's your answer.
Also Read - How to Repatriate Mutual Fund Proceeds to Your Country
5. Assess Tax Compliance and TDS
Tax mistakes are expensive and time-consuming to fix.
Critical checks:
- Does the platform automatically deduct TDS as per NRI tax rules?
- Will I receive Form 16A for TDS deducted?
- Can they help with DTAA claims?
- Do they provide consolidated tax statements?
The platform should:
- Deduct TDS correctly based on your residential status
- Issue certificates promptly
- Provide year-end tax summaries
- Guide you on DTAA benefits if applicable
Poor tax handling can mean:
- Excess TDS deducted that takes years to refund
- Missing Form 16A causing ITR filing problems
- Penalties for non-compliance
Read our guide on ways to avoid NRI tax payment penalties to understand what good platforms should handle for you.
6. Evaluate Customer Support (Time Zone Reality)
It's 11 PM in Dubai. You notice an unauthorized transaction. You call support.
"Sorry, our helpline operates 9 AM to 6 PM IST only."
Dealbreakers:
- No 24/7 support for international clients
- No phone support (email-only)
- Average response time over 48 hours
- No escalation mechanism
- Representatives who don't understand NRI-specific issues
Good signs:
- Dedicated NRI helpline
- Support in your time zone
- Multiple contact channels (phone, email, chat, WhatsApp)
- Clear escalation path
- Support team trained on FEMA, DTAA, repatriation
Test them: Before investing, ask a complex question about residential status or DTAA. See how accurately and quickly they respond.
Major banks like ICICI, HDFC and SBI have dedicated NRI helplines, but response quality varies.
7. Demand Fee Transparency
"Zero fees!" the banner screams. Then you discover:
- Annual maintenance charges
- Hidden platform fees
- Inflated expense ratios
- Transaction charges
- Forex margins
- Repatriation processing fees
What to check:
- Complete fee schedule in writing
- All-in cost calculations
- Comparison with competitors
- Exit charges if any
Ask for a worked example: "If I invest ₹10 lakh for one year, what are ALL the fees I'll pay?"
Our NRI Fixed Deposit comparison tool shows not just rates but also helps you understand the impact of fees.
Red flag: If they can't give you a clear, complete fee breakdown upfront, assume fees are high.
8. Read Real User Reviews (Not Fake Ones)
App store reviews can be manipulated. Here's how to find truth:
Where to look:
- Reddit threads about the platform
- Complaints on consumer forums
- Reviews on multiple platforms (App Store, Google Play, Trustpilot)
- Discussion in NRI Facebook groups and communities
Warning signs:
- Only 5-star reviews with generic praise
- No negative reviews (everyone has some unhappy customers)
- Spelling mistakes and poor grammar in reviews
- Reviews posted in bursts on the same dates
Look for specifics:
- "Repatriation took 8 weeks instead of promised 2 weeks"
- "Customer support stopped responding after I invested"
- "Hidden charges appeared at withdrawal"
One real negative review with details is worth more than a hundred generic positive ones.
9. Verify Data Privacy Policies
Your financial data is valuable. To you, and to criminals.
Must-haves:
- Clear privacy policy in plain English
- Compliance with India's Digital Personal Data Protection Act
- Statement on data sharing with third parties
- Data retention policies
- Your rights to access and delete data
Questions to ask:
- Where is my data stored?
- Who has access to it?
- Is it shared with or sold to third parties?
- How can I request deletion?
- What happens to my data if I close my account?
Red flag: Vague privacy policies that give the platform broad rights to use or share your data without explicit consent.
10. Test the Exit Process
Getting your money out should be as easy as putting it in. Often, it isn't.
Before investing, ask:
- How do I close my account?
- How long does fund withdrawal take?
- Are there exit penalties?
- Can I transfer my investments elsewhere?
- What documentation is required?
Try this: Ask customer support for the exact exit process as if you've changed your mind. Note how helpful they are.
Warning sign: Platforms that make exiting difficult - long processes, hidden penalties, "cooling off periods" - often have something to hide.
11. Research Company Background
Who's behind this platform?
Basic due diligence:
- How long has the company existed?
- Who are the founders? (LinkedIn profiles, past experience)
- Who are the investors? (Reputable VCs or unknown entities?)
- What's the company's financial health?
- Any past regulatory issues or complaints?
- Physical office locations (not just virtual)
Search for:
- "Company name + scam"
- "Company name + complaint"
- "Company name + SEBI" or "Company name + RBI"
For example, Belong raised $5 million from Elevation Capital, a reputable VC, and our team includes IIT alumni and SEBI-registered advisors. This information is publicly verifiable.
Red flag: Companies that hide ownership details, have no physical presence, or have founders with questionable backgrounds.
12. Assess Product Range and Quality
A platform might be legitimate but still not suitable for you.
Evaluate:
- Does it offer the products you need? (NRE FDs, mutual funds, stocks?)
- Quality of product selection (best-in-class or mediocre?)
- Educational resources (do they help you make smart decisions?)
- Tools and calculators (like our Residential Status Calculator)
Questions:
- Why should I use this platform instead of going directly to a bank or AMC?
- What unique value does it provide?
- Does it truly solve NRI pain points or just replicate what banks do?
👉 Tip: The best platforms don't just give you access to products. They solve uniquely NRI problems - currency risk, tax complications, repatriation hassles, compliance burden.
Red Flags That Should Make You Run
Some warning signs are absolute dealbreakers. If you see any of these, don't invest a single rupee:
Red Flag | Why It Matters |
|---|---|
Guaranteed returns above bank FD rates | Illegal per RBI/SEBI rules. Likely a Ponzi scheme. |
Pressure to invest quickly | Legitimate investments don't create artificial urgency. |
Requests for payment outside the app | Money should only move through verified, traceable channels. |
Can't verify regulatory licenses | Operating illegally. Your money isn't protected. |
Celebrity endorsements as primary marketing | Often means weak product. Check if celebrity actually uses it. |
Requires you to recruit others | Multi-level marketing / pyramid scheme. |
Too-good-to-be-true testimonials | "I made ₹10 lakhs in one week!" - Not real investing. |
No physical office or vague address | Virtual entities can disappear overnight. |
Poor English/communication | Suggests unprofessional operation. |
Asks for your banking passwords | Never, ever share login credentials. |
Can't withdraw funds easily | Classic scam tactic - easy in, hard out. |
Not registered on app stores | Sideloading APKs is dangerous. |
Remember: A 75-year-old retiree in Telangana lost ₹13 crore to scammers who promised high returns through a WhatsApp "investment group." The scam used a fake trading app that showed artificial profits.
Also Read - Best Platforms & Apps for NRIs to Invest in Mutual Funds
How to Verify Claims (Don't Just Trust Marketing)
Marketing says one thing. Reality might be different.
Verification checklist:
1. Regulatory claims:
- Get the exact registration number
- Search SEBI/RBI/IFSCA databases independently
- Don't trust certificates shown in the app (can be faked)
2. Return claims:
- Ask for audited performance data
- Compare with industry benchmarks
- Understand if returns are guaranteed or projected
- Check if past performance includes all fees
3. Security claims:
- Ask for documentation of security certifications (ISO 27001, etc.)
- Inquire about last security audit date
- Request information about past security incidents
4. Partnership claims:
- Verify directly with claimed partners (banks, AMCs)
- Don't assume "powered by X" means endorsed by X
- Check if partnerships are marketing arrangements or actual product integration
5. User testimonials:
- Try to find and contact users independently
- Check if reviews exist outside platform's control
- Look for detailed, specific experiences rather than generic praise
Why GIFT City Platforms Stand Apart
Traditional NRI investment apps often replicate the same old problems: currency conversion losses, tax complications, repatriation headaches.
Platforms operating in Gujarat International Finance Tec-City (GIFT City) offer a fundamentally different structure.
Key differences:
Currency: Invest directly in USD/other foreign currencies. No forced conversion to INR.
Taxation: Products like GIFT City Fixed Deposits offer tax-free interest income. Compare this to NRE/NRO FDs where you face TDS.
Repatriation: Simplified processes under IFSCA's international framework.
Regulation: IFSCA provides unified regulation (combining powers of RBI, SEBI, IRDAI, PFRDA) creating a streamlined compliance environment.
Products: Access to Alternative Investment Funds (AIFs), international mutual funds, and other products not easily available elsewhere.
Learn more about GIFT City benefits for NRIs.
At Belong, we're building specifically for NRIs living this reality. Our USD fixed deposits eliminate currency risk, simplify repatriation, and provide tax-free returns - solving pain points traditional platforms ignore.
Making the Right Choice
Choosing an investment platform isn't like choosing a food delivery app. The stakes are your financial future.
Take your time. Use this checklist. Ask uncomfortable questions. Verify everything.
A legitimate platform will welcome your due diligence. A fraudulent one will try to rush you or make you feel stupid for asking questions.
Your next steps:
Week 1: Use this checklist to evaluate 3-4 platforms you're considering. Make notes.
Week 2: Verify regulatory licenses independently. Read real user experiences.
Week 3: Test customer support with detailed questions. Compare fees comprehensively.
Week 4: Start with a small investment to test the complete cycle: deposit, investment, tracking, and withdrawal.
Only after you're satisfied should you commit larger amounts.
Your Money, Your Choice, Your Protection
The Indian fintech ecosystem offers genuine opportunities. NRIs can now access investments that were practically impossible a decade ago.
But with opportunity comes risk. Fraudsters have become sophisticated. Even legitimate platforms might not be suitable for your specific needs.
This checklist gives you power - power to ask the right questions, spot red flags, and make informed decisions.
Your money deserves this level of care.
Want to see how Belong addresses each point on this checklist?
Download the Belong app and explore our GIFT City USD fixed deposits - designed from the ground up for NRIs who want safety, tax efficiency, and simplicity.
Join our WhatsApp community where over 5,000 NRIs share experiences, ask questions, and help each other navigate India's financial landscape safely.
Join Belong WhatsApp Community
Because your financial security is too important to leave to chance.
Sources & References:
Business Standard - Investment Scams Report 2024
SEBI Official Website - Intermediaries Registration
RBI Master Directions on NRI Accounts and Investments
Meta Report on Financial Scams (June 2025)
FICO India Scams Impact Survey 2024
Ministry of Home Affairs - Cyber Crime Data
