RBI Approval Letter for NRI Demat A/C

I am NRI from USA. 7 yrs ago I opened Demat A/C at ABN Amro. 2 yrs ago I moved my Demat A/C to ICICI. At the time ABN Amro gave NOC and any other documents asked by ICICI to meet RBI requirements. Now after 2 yrs ICICI has frozen my Demat account. They need a copy of RBI approval letter. All new transfer in to the Demat account is getting bounced and nothing can be sold. This problem is first time in last 7 years.

ICICI is not helping. ABN Amro gave this info to them and they have confirmed receiving it. Unfortunately I don't have a copy. CAN ANYONE HELP??

I have two Demat A/C, Repatrible and Non-Repatriable, would I need two separate RBI Approval letters. ICICI is pointing to NSDL circular NSDL/PI/98/007.

Jatin

have you traded in equities? if i am not mistaken, NRIs cannot trade in shares. or it has to do something with tax.

I also received similar letter from ICICI bank.
Could someone tell me how to get the RBI approval letter.
Thanks

I have also received letter from ICICI Bank quoting NSDL circular NSDL/PI/98/007, which says NRIs need to get an RBI approval letter to be able to sell their shares. Funny part is that this circular is dated Jan 1998. I opened NRO and DMAT account with ICICI Bank in 2005, but it is now that ICICI Bank has woken up to RBI requirement and is asking for RBI approval. In the mean time they have sealed the account and no credit for any purchase will be given. ICICI Bank when coctacted refused to provide any further guidance, on how to get this RBI letter. If some one can help or provide some guidance it will be highly appreciated.

Hi
have you tried contacting your branch's managers. its the nri desk at ICICI Bank or whichever bank you bank through that has to provide you this letter. Talk to them and tell them you will report to SEBI and RBI both about this if they do not respond.

Yes I have written to them many times. I have written to the branch manager, also written to PINS NRI Cell who is responsible for getting RBI approval. In my case, my previous RBI approval was forwarded by ABN Amro Bank to ICICI for transfer and update. ICICI had confirmed receiving this.

But now, no matter what I write, only response I am getting from ICICI Bank is like a broken record. Saying they do not have RBI approval. As soon as I have the latest RBI approval, I should forward this information to ICICI Bank.

I kinow from ICICI web site and also from NSDL documents that my bank is responsible for this update. But they are ignoring my requests. I could not find where to complaint ??

Hi Friends,

Any update on this RBI Approval procedure.

An urgent help will be highly appreciated.

Regards
Suresh

try posting a complaint on the rbi website and the ministry of overseas indian affairs. also try to contact a consumer forum ... you might get some details from past issues of "Outlook Money " magazine

I am a NRI from UK, the following is based on my recent attempt to open a DEMAT and online trading account (I am not very sure about some of these, please check with relevant agencies):

1. NRI's from US cannot have trading account as the broker needs to be approved and registered in the US, meaning that the broker would be subject to US laws, as of now no Indian broker is registered in the US.

2. NRI's need to have a Portfolio Investment Scheme (PIS) account with a approved bank. RBI has only approved 4-5 banks (HDFC, ICICI, Indusind, cant remember others) for PIS purposes. A NRI can only have one PIS account but can link in multiple DEMAT accounts to this PIS account. All secondary transactions have to be carried out through PIS account, the PIS account transactions have to submitted by the account holding bank to the RBI everyday. When an application is made to the PIS account the Bank needs to get the approval letter from RBI.

I am not aware when this requirement of PIS account was introduced and what is the procedure for accounts that were already operating prior to the PIS requirement. Hope my post is not totally irrelevant to the points raised here.

Why cant the US NRI open a Demat account in Inidia with his Indian address? The bank need not be told that he is an NRI. Isn't that a solution? Or is that illegal or something?