Repatriable vs Non-repatriable describes whether an NRI investor can freely move investment proceeds (capital + gains) back to their country of residence in foreign currency, or whether the funds must stay in India.
Plain-English definition
Repatriable: Funded from foreign inwards remittance or NRE / FCNR balances. Sale proceeds and dividends can be remitted abroad in USD/GBP/AED without RBI approval (within annual limits).
Non-repatriable: Funded from NRO account (Indian-source income — rent, dividends, salary earned before NRI status). Proceeds stay in NRO; remittance abroad is capped at USD 1 million per financial year with CA-certified Form 15CA/15CB.
Example
An NRI buys ₹10 lakh of equity mutual funds via NRE — these are repatriable. The same NRI also invests ₹5 lakh from Indian rental income via NRO — these are non-repatriable. On redemption, the NRE-funded units flow back to a USD account freely; the NRO-funded units' proceeds need the USD 1M-per-year route.
When it matters
- Choosing between NRE vs NRO mutual-fund folios
- Planning eventual return to country of residence
- Estate planning / inheritance to non-resident heirs
SEBI / RBI caveat
Repatriation is governed by FEMA + RBI Master Direction on Remittance of Assets, not SEBI. Always confirm folio status at the time of investment — switching later is operationally painful.