Can NRIs Continue SIPs After Moving Abroad

When Meera landed in Dubai three weeks ago, she messaged in the Belong WhatsApp community, wondering about her five SIPs back in India. 

"Can I keep them running?" she asked, sounding a bit anxious.

The answer? Absolutely, but there’s a catch for NRIs like her. Your residential status under FEMA changes when you move abroad, and that impacts your SIPs. 

Without updating your status, you risk frozen accounts, blocked transactions, or even penalties up to three times the transaction amount.

At Belong, we’ve guided thousands of NRIs through this shift, helping them avoid pitfalls and smoothly transition their finances to NRI status in under two weeks.

This guide walks you through the legal requirements, a simple step-by-step process, tax changes, and smarter investment options you might not have considered. 

By the end, you’ll know exactly what to do with your SIPs and whether they still fit your goals as an NRI.

The Direct Answer: Yes, But Compliance Isn't Optional

Can you continue your SIPs after moving abroad? Yes -but you must update your NRI status, complete fresh KYC, convert your bank accounts, and notify your AMCs.

Continuing without these updates violates FEMA regulations. Here's what most NRIs don't know:

• Your resident savings account becomes invalid the moment you qualify as an NRI under FEMA
• Operating it without conversion is a FEMA violation
• AMCs cannot accept investments from accounts that should be NRE/NRO but aren't
• Penalties can be up to ₹2 lakhs (if the amount is not quantifiable) plus up to 3x the sum involved if quantifiable, with additional ₹5,000 per day for continuing violations (source)
• ​Banks can freeze your account if they discover non-compliance during audits

The good news? The process to update everything takes 10-15 days if you have your documents ready. The bad news? Many NRIs discover these requirements only when their transactions start getting rejected.

Let me walk you through what needs to happen, in what order, and why each step matters.

Your 60-Day Timeline: When to Do What

Timing is critical. Here's the exact sequence you should follow after moving abroad:

Within 7 Days of Arriving

• Inform your bank about your change in residential status
• Request NRE/NRO account opening forms
• Start gathering required documents

Within 30 Days

• Complete fresh KYC with your overseas address
• Submit documents for NRE/NRO account conversion
• Link new NRI account to existing investments

Within 60 Days

• Update residential status with all AMCs
• Submit bank mandate forms to link NRO account with SIPs
• Verify all SIPs are auto-debiting from correct account

Ongoing

• Monitor first few SIP deductions to ensure they process smoothly
• File ITR as NRI (if applicable)
• Review whether continuing SIPs still makes sense

Why 60 days? While FEMA doesn't explicitly state a deadline, RBI guidelines expect "immediate" notification when residential status changes. Banks interpret this as 30-90 days, but waiting longer increases audit risk.

👉 Tip: Set calendar reminders for each milestone. Missing deadlines doesn't just cause penalties -it can halt all your India investments until you fix compliance.

What Exactly Changes When You Become an NRI?

Before we dive into the how-to, let's understand what legally changes the moment you move abroad. This isn't just about mutual funds -it affects your entire financial relationship with India.

Under FEMA, you're classified as an NRI if:

• You leave India for employment/business/education or any purpose indicating intention to stay abroad for an uncertain period (regardless of exact days; the 182-day rule applies more to income tax residency) (Deutsche Bank, FEMA FAQ)
• Your intention is to stay abroad (even if duration is uncertain)
• You're employed, doing business, or pursuing education overseas

What this means for your accounts:

• Resident savings accounts become invalid. You cannot operate them anymore.
• You must convert to NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts
• All investments must be routed through these NRI accounts
• Your tax status changes -only Indian income is taxable now

What happens to existing SIPs: According to ICICI Bank's NRI investment guidelines, "As an NRI, you can continue with your existing mutual fund SIPs that you had initiated when you were a resident Indian. Once you become an NRI, you will have to mandatorily update your NRO account details with your AMC or broker" (ICICI Bank, 2025).

The SIPs don't stop automatically. They keep running. But here's the catch:

1. Auto-debit will fail once your bank converts your savings account to NRO
2. New investments won't process if AMC doesn't have updated KYC
3. You're technically in violation if you continue without notification

Think of it this way: your investments are in a grace period, but the clock is ticking. The sooner you update, the smoother your financial life continues.

Also Read - Best SIP Options for NRIs – Step by Step Guide

Step-by-Step: How to Update Your SIP Status

Let me break down the exact process. This is what we guide every NRI through at Belong's WhatsApp community.

Step 1: Open NRE/NRO Accounts

First, you need the right type of account for your ongoing SIPs. Here's which one:

For SIPs started when you were a resident:

• Use an NRO account
• These SIPs were funded with Indian income
• Redemptions will automatically credit to NRO
• Subject to USD ₹1 million annual repatriation limit

For new SIPs you start as an NRI:

• You can use either NRE or NRO
• NRE account = fully repatriable, no limits
• NRO account = repatriable up to $1M per year
• Choose based on your repatriation plans

Also Read - How to Repatriate Mutual Fund Proceeds to Your Country

Most best banks for NRI accounts like ICICI, HDFC, and Axis allow online NRE/NRO account opening. You'll need:

• Passport (bio pages + visa/work permit pages)
• Overseas address proof (utility bill, bank statement, tenancy contract)
• PAN card
• Passport-size photographs
• Recent bank statements

Processing time: 7-10 days for most banks if documents are complete.

👉 Tip: Open both NRE and NRO accounts from the start. You'll need NRO for existing SIPs and might want NRE for future investments or to receive foreign income.

Step 2: Complete Fresh KYC as NRI

Even if you completed KYC as a resident, you need to redo it as an NRI. This is mandatory under SEBI regulations.

Documents required:

• Copy of passport (pages with name, DOB, photo, address)
• Current overseas address proof
• PAN card
• Recent photograph
• Visa or work permit copy
• For US/Canada NRIs: Additional FATCA declaration

Where to complete KYC: You can complete NRI KYC through:

• KRA websites: CAMS KRA, CVL KRA, Karvy KRA (most common)
• AMC directly: Some fund houses have their own NRI KYC portals
• NRI investment platforms: Platforms like iNRI, SBNRI handle end-to-end KYC
• Your bank: If you have NRI accounts with ICICI/HDFC, they can process MF KYC

In-Person Verification (IPV): Since you're abroad, IPV can be done via:

• Video KYC: Most platforms now offer video verification
• Notarized documents: Get documents attested by Indian embassy or notary public in your country
• Power of Attorney: Authorize someone in India to complete IPV on your behalf

KYC Status to aim for: After SEBI's new rules (extended to April 2026), there are three KYC statuses:

• Validated (best) -Aadhaar-linked, works everywhere
• Registered (acceptable) -Works until April 30, 2025 for NRIs (extension from May 14, 2024), but limited portability
• On-Hold (problem) -Blocks all transactions

Most NRIs will get "Registered" status initially. According to SEBI relaxation, this is acceptable until April 30, 2025 for NRIs (extension from May 14, 2024) for NRIs

(Sources: iNRI, KYC Update,Economic Times).

👉 Tip: Choose one KYC platform and stick with it. Your KYC is centralized across all AMCs, so you only need to do this once.

Step 3: Link NRO Account to Existing SIPs

Now comes the critical step: telling your AMCs about your new account and status.

For each AMC you invest with, you need to:

a) Submit a Bank Mandate Form

• Download from the AMC website
• Fill in your new NRO account details
• This updates the debit account for all your SIPs with that AMC

b) Change Request Form

• Update residential status from "Resident Indian" to "NRI"
• Update address to overseas address
• Update contact details (phone, email)

c) Supporting Documents

• Copy of updated KYC
• NRO account proof (bank statement or passbook front page)
• Overseas address proof

Where to submit:

• Online: Upload through AMC portal (fastest)
• Email: Send scanned copies to AMC investor services email
• Courier: Physical copies to AMC registered office
• Through distributor: If you invested via intermediary like SBNRI

Processing time: 5-7 business days for most AMCs.

Important detail: If you have 5 mutual funds all from HDFC AMC, you submit the mandate form once to HDFC, and they update all 5 funds. But if you have funds across HDFC, ICICI Prudential, and SBI AMC, you need to submit separately to each (SBNRI, 2023).

Step 4: Verify and Monitor

After submitting all updates:

• Check your SIP dates: Ensure auto-debit doesn't fail during transition
• Monitor first deduction: After account update, watch if SIP processes smoothly from NRO
• Get confirmation: Most AMCs send email confirmation when updates are complete
• Download updated statement: Verify your address shows overseas location

If your SIP auto-debit fails during this transition period, don't panic. You can manually invest the missed amount later. But ideally, time your account updates between SIP dates to avoid this.

👉 Tip: Keep all email confirmations from AMCs. If there's any dispute later about when you updated your status, you'll need proof.

What If You Don't Update? Real Consequences

"Do I really need to do all this? My SIPs are running fine."

I've heard this dozens of times. Here's what actually happens if you don't update:

Scenario 1: Caught during bank audit Banks audit NRI accounts periodically. If they discover you've been using a resident account after moving abroad:

• Account gets flagged
• All transactions freeze
• You're asked to regularize immediately
• Penalty: ₹1.5-2 lakhs plus interest (Belong FEMA Guide)

Scenario 2: AMC compliance check AMCs cross-verify investor details with banks. If your PAN shows NRI status but AMC records show resident:

• Future SIPs stop processing
• Redemptions may be held
• You're asked to submit fresh KYC and documentation
• Result: Weeks of frozen access to your investments

Scenario 3: Tax department notice When you file ITR as NRI but have resident-status mutual funds:

• Mismatch triggers scrutiny
• You may be asked to explain source of investment
• TDS might not get credited correctly

Scenario 4: FEMA violation Operating resident account as NRI is a direct FEMA contravention:

• Under Section 13 of FEMA, penalties can be up to 3 times the sum involved
• For ongoing violations, additional charges per day
• In severe cases, legal proceedings

Also Read - Impact of FEMA Rules on NRI Mutual Fund Investments

Real example from our community:

Arjun moved to London in January 2024. His SIPs kept running via his old HDFC savings account. In November 2024, during a routine audit, HDFC discovered his non-updated status. They froze his account, stopped all SIPs, and asked him to pay ₹1.2 lakh penalty plus complete fresh KYC. His investments were stuck for 45 days.

The "hassle" of updating your status upfront saves you far bigger hassles later.

Starting Fresh: New SIPs as an NRI

What if you want to start new SIPs after becoming an NRI? Good news: the process is actually simpler than for residents in some ways.

Can NRIs start SIPs in India? Yes.

You can invest in most mutual funds that residents can, with a few exceptions (discussed below).

Through which account:

• NRE account: If you're parking foreign earnings and want full repatriability
• NRO account: If you have Indian income (rent, dividends) and want to invest that

Tax treatment:

• Same as residents -equity funds taxed as LTCG @ 12.5% above ₹1.25L
• Debt funds taxed at slab rates
• TDS applicable: AMCs will deduct TDS when you redeem

SIP minimums:

• Usually ₹500-1,000 per month
• Same as for residents

Process:

1. Complete NRI KYC (one-time)
2. Open NRE/NRO account
3. Choose funds on AMC website or through platform
4. Set up SIP with auto-debit from your NRI account
5. Monitor and adjust as needed

Platforms that support NRI SIPs:

• iNRI (part of our Belong ecosystem, optimized for NRIs)
• SBNRI
• Direct through AMC websites (ICICI Pru, HDFC MF, SBI MF, etc.)
• Some apps like Groww, Paytm Money support NRI investing

The catch: If you're from the US or Canada, many AMCs don't accept investments due to FATCA compliance burden. Check if your chosen AMC accepts US/Canada NRIs before proceeding (ICICI Bank, 2025).

👉 Tip: If you're planning significant SIP investments, consider splitting across 2-3 AMCs. This diversifies not just your portfolio, but also your operational risk if one AMC has compliance issues.

Also Read - Taxation on Mutual Funds

The US & Canada Problem: FATCA Restrictions

If you're an NRI in the United States or Canada, you face additional hurdles.

Why the restriction? The Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions to report accounts of US persons to the IRS. Similarly, Canada has its own reporting requirements.

Compliance is expensive and complex. Most Indian AMCs simply choose not to accept US/Canada NRI investors rather than deal with the regulatory burden.

Which AMCs still accept US/Canada NRIs? As of 2025, these AMCs allow investments from US/Canada residents (but with additional documentation):

• ICICI Prudential Mutual Fund (with conditions)
• SBI Mutual Fund (offline applications only)
• PPFAS Mutual Fund (Parag Parikh)
• • Aditya Birla Sun Life Mutual Fund (online access available)
• UTI Mutual Fund (online access available)
• Axis Mutual Fund (case-by-case; often requires physical presence or notarized documents)
• Nippon India Mutual Fund (online access available)
• TATA Mutual Fund (online access available)
• L&T Mutual Fund (online; excludes close-ended funds)
• Sundaram Mutual Fund (online access available)
• Quant Mutual Fund (online access available)
• Others on case-by-case (e.g., DSP Mutual Fund—US-only/physical; Canara Robeco Pramerica; Quantum; White Oak Capital; ITI—lump sum only)

Sources: Motilal Oswal PrimeWealth Zerodha Economic Times SBNRI

Also Read - Types of Mutual Funds

Additional documents you'll need:

• W-9 form (for US) or equivalent (for Canada)
• Additional FATCA self-certification
• Sometimes notarized declarations
• Higher scrutiny on source of funds

Alternative for US/Canada NRIs: If you already have SIPs from your pre-NRI days, you can usually continue them. But starting fresh investments becomes difficult.

This is one reason why GIFT City investments are gaining popularity among US/Canada NRIs. GIFT City operates under IFSC regulations, not regular Indian regulations, and doesn't have the same FATCA restrictions for USD investments.

👉 Tip: Before you move to the US/Canada, front-load your Indian SIP investments. Once you're there, continuing is easier than starting fresh.

How Taxation Changes When You Continue SIPs

Your SIP investments don't suddenly become tax-free when you become an NRI. Here's how taxation works:

For Ongoing SIPs Started as Resident

Capital Gains Tax (when you redeem):

• Long-term (held > 1 year for equity): 12.5% on gains above ₹1.25 lakh
• Short-term (held \< 1 year for equity): 20%
• Same rates apply to NRIs and residents

Tax Deducted at Source (TDS): Here's where it differs. When you redeem as an NRI:

• TDS is deducted at source by the AMC
• LTCG TDS: 12.5% on gains above ₹1.25L threshold
• STCG TDS: 20%
• You get a TDS certificate (Form 16A)

Example:

You invested ₹50,000 via SIP over 3 years. It's now worth ₹80,000. You redeem.

• Investment: ₹50,000
• Redemption: ₹80,000
• Gain: ₹30,000
• Tax-free threshold: ₹1,25,000
• Taxable: ₹0
• Tax: ₹0

But if your gain was ₹1,50,000:

• Gain above threshold: ₹25,000
• Tax @ 12.5%: ₹3,125
• AMC deducts this as TDS

For New SIPs Started as NRI

Same tax treatment. No difference.

Where Many NRIs Go Wrong

Mistake 1: Not claiming tax treaty benefits If your country has a DTAA with India, you might get lower withholding rates. File Form 10F and claim treaty benefits to reduce TDS upfront.

Mistake 2: Not filing ITR Even if TDS is deducted, you should file an Indian ITR if:

• Your Indian income exceeds basic exemption limit
• You want to claim refund of excess TDS
• You want to maintain clean tax records

Check our NRI tax filing guide for step-by-step help.

Mistake 3: Ignoring tax in country of residence Your home country might also tax these gains. US, UK, UAE all have different rules. Consult a cross-border tax advisor. The UAE-India DTAA, for example, determines which country has taxing rights.

Also Read - Comparing Indian Mutual Funds vs UAE Mutual Funds

👉 Tip: Keep detailed records of all SIP investments -dates, amounts, NAVs. When you redeem years later, calculating capital gains accurately becomes much easier.

Repatriation: Getting Your Money Out of India

Can you bring your SIP money back to your country of residence when you redeem? This depends entirely on which account you used.

SIPs Funded from NRE Account

• Fully repatriable -both principal and gains
• No limit on how much you can repatriate
• Simple process -funds transfer to your NRE account, then overseas
• No additional documentation beyond standard forms

SIPs Funded from NRO Account

• Limited repatriation -up to $1 million per financial year
• This limit is cumulative for all NRO accounts
• Includes everything: FD redemptions, property sales, mutual fund redemptions
• Requires Form 15CA and 15CB submission

Real-world example:

Priya has:

• ₹40 lakh in NRO SIPs
• ₹30 lakh from property sale
• ₹35 lakh NRO FD maturity

Total: ₹1.05 crore

She can repatriate only ₹8.3 crore (approx $1M at ₹83 rate) in FY 2025-26. The remaining ₹21.7 lakh must wait until FY 2026-27.

This is why planning matters. If you know you'll eventually want to repatriate, consider:

• Starting new SIPs through NRE account
• Transferring existing NRO funds to NRE (within $1M limit) before investing
• Timing redemptions across financial years to stay within limits

For detailed rules, see our NRI repatriation guide.

👉 Tip: If you have significant corpus in India and plan to move it abroad eventually, start the repatriation process early. Don't wait until you need the money urgently -the $1M annual limit might create delays.

Also Read - How NRIs Can Invest in Mutual Funds from Abroad

Common Mistakes NRIs Make (And How to Avoid Them)

After helping thousands of NRIs transition their investments, we've seen these mistakes repeatedly:

1. Waiting "until I'm settled" to update status

Many NRIs think "I'll do it once I'm settled in Dubai/Singapore/US." But your residential status changes legally on the day you move, not when you "feel settled." Every day you wait is technically a compliance violation.

Also Read - What Happens to Mutual Funds If You Return to India (RNOR → Resident)

2. Assuming the bank will notify you

Banks won't chase you to convert your account. It's your responsibility to inform them. Don't wait for a notice -by then, your account might already be flagged.

3. Updating only the bank, not the AMCs

Just because you opened an NRO account doesn't mean your AMCs automatically know. You must explicitly notify each AMC about your status change and link the new account.

4. Not checking if SIPs are FATCA-compliant

US/Canada NRIs continuing old SIPs sometimes discover their AMC has stopped accepting their nationality. Check this proactively rather than when a transaction fails.

5. Using old Indian mobile number for OTPs

If your Indian SIM stops working abroad, you'll lose access to accounts. Update to either:

• International roaming on your Indian number
• Your new overseas number
• A family member's Indian number you can access

6. Not maintaining Indian address for correspondence

AMCs send physical statements, tax documents, and compliance notices to your registered address. If you put only your overseas address and it's not serviceable, you might miss critical communications. Keep a family member's Indian address as alternate.

7. Stopping SIPs thinking they're not allowed

Some NRIs panic and stop their SIPs entirely. This is unnecessary. You can continue -you just need to update your status properly.

8. Not downloading all old statements before updating

Once your status updates to NRI, accessing historical transactions becomes harder on some platforms. Download all statements for the last 3-5 years before initiating changes.

Also Read - Common Mistakes NRIs Make When Investing in Indian Mutual Funds

Should You Even Continue Your SIPs? A Decision Framework

Just because you can continue SIPs doesn't mean you should. Here's how to decide:

Continue your SIPs if:

• You're building long-term wealth in India (retirement, children's education)
• You plan to return to India eventually
• Your SIPs are in good-performing funds
• Indian market exposure fits your overall asset allocation
• You don't need this money in the next 3-5 years
• Repatriation limits ($1M/year) won't constrain you

Consider pausing/stopping if:

• You've moved to a strong-currency country (US, UK, EU) and rupee depreciation erodes real returns
• You need liquidity and can't wait for repatriation limits
• Your investment horizon has shortened significantly
• You can get better risk-adjusted returns in your new country
• Currency conversion costs and taxes make it uneconomical
• You want to simplify and consolidate your global finances

Analyze the math:

An SIP that gave 12% returns in INR might actually give only 7-8% in USD terms after accounting for rupee depreciation. If you can get 7% in USD-denominated safe investments with no currency risk, the India SIP might not be worth the complexity.

Consider alternatives:

Instead of traditional INR mutual funds, explore:

• GIFT City USD fixed deposits: Tax-free, no rupee risk, 4.5-5.5% returns (GIFT City FD)
• GIFT City AIFs: Equity exposure in USD denomination (GIFT City Funds)
• International ETFs: Through platforms accessible to NRIs
• Home country SIPs/401(k): If in the US, maximizing US retirement accounts often makes more sense

Use Belong's FD comparison tool to compare returns across NRE, NRO, and GIFT City options.

👉 Tip: Don't make this decision in isolation. Map out your complete financial picture -income, expenses, goals, tax situation -across both countries before deciding.

The GIFT City Alternative: Why Many NRIs Are Switching

Here's something most NRIs don't consider: you don't have to stick with the same investment structure you had as a resident.

When you become an NRI, you unlock access to GIFT City, India's International Financial Services Centre. It operates under different regulations than mainland India and offers several advantages:

GIFT City vs Regular Indian Mutual Funds:

Why this matters:

If you're in Dubai earning AED, or in the US earning USD, you're thinking in dollars, not rupees. GIFT City lets you invest in USD and think in USD, without the constant mental conversion and rupee depreciation worry.

What you can invest in through GIFT City:

• USD fixed deposits (4.5-5.5% tax-free)
• AIFs (Alternative Investment Funds) for equity exposure
• International mutual funds
• Structured products

The catch:

While some products may have lower entry points, Alternative Investment Funds (AIFs) in GIFT City, a common route for equity exposure, typically have a minimum investment threshold of USD 150,000 for retail investors. So they're better for lump-sum investing rather than small systematic investments. (source)

Our recommendation:

Don't think "either-or." Many NRIs use a combination:

• Continue existing well-performing SIPs in India (after updating status)
• Start new investments in GIFT City for USD exposure
• Build emergency funds in NRE FDs
• Maintain small regular SIPs for rupee cost averaging

Belong was built specifically to help NRIs navigate this. We've integrated GIFT City investments directly into our app, alongside tools to compare with traditional options. Download the app to see live rates and make informed choices.

Your Next Steps: Don't Leave This Pending

If you've moved abroad and haven't updated your investment status, here's what to do today:

Immediate actions (this week):

1. Check your last entry stamp in passport -count days outside India
2. Determine if you qualify as NRI under FEMA (182+ days outside India)
3. Contact your bank to start NRE/NRO account process
4. Gather documents: passport, visa, overseas address proof

This month:

1. Open NRE/NRO accounts
2. Complete fresh KYC through a KRA or AMC
3. Download bank mandate forms from each AMC you invest with
4. Submit status change and bank mandate forms to all AMCs

Within 60 days:

1. Verify all updates are complete
2. Monitor first SIP deduction from new account
3. File ITR as NRI if applicable
4. Review if continuing SIPs aligns with your goals

Don't do this alone.

We built Belong because we saw NRIs struggling with exactly these transitions. Our WhatsApp community has 4,000+ members who've been through this. Ask questions, share your situation, get guidance.

Our Belong app has tools specifically designed for this like theResidential status calculator to determine your exact status

You've worked hard to build your SIP portfolio. Don't let compliance issues or regulatory penalties undo that. Update your status correctly, explore better alternatives if they exist, and build wealth smartly across borders.

The transition from resident to NRI investor doesn't have to be complicated -it just has to be done right.

Disclaimer: This article is for informational purposes only and should not be considered financial, legal, or tax advice. FEMA and tax regulations change frequently. Please consult with a qualified advisor before making investment decisions. Belong does not guarantee returns on any investment and is not responsible for any losses incurred based on information provided in this article.

Sources: ICICI Bank, Deutsche Bank, Kotak Mutual Fund