Why are account opening and brokerage charges higher for NRI accounts compared to resident accounts?
The higher charges for NRI accounts compared to resident accounts are due to the additional manual processes and operational requirements involved:
- Enhanced Documentation & Verification: Opening an NRI account requires extra documentation and a more stringent verification process.
- Continuous Communication with PIS Banks: For PIS accounts, Firstock must maintain regular communication with PIS banks to facilitate settlements.
- TDS Deductions & Filings: For Non-PIS accounts, additional efforts are required to deduct and file Tax Deducted at Source (TDS) returns per regulatory guidelines.
These extra steps increase the operational workload, which is reflected in the higher brokerage charges for NRIs.
