What is the Difference Between NRI and OCI?

• Written by Mudit Handa

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Indians have their foothold in almost every country of the world. With their intellect, calibre, and determination to succeed, Indians have contributed to the workforce of the nations where they’ve worked. According to the International Migration Outlook 2023, every year, 2.5 million Indians migrate overseas, making for the highest annual number of migrants in the world. Due to this, Indians are today known as the leading source of migrants to the countries of Organisation for Economic Co-operation and Development (OECD). 

If any of your relatives are staying abroad, you must have heard the terms– NRI, OCI, or PIO. This article will explain in complete detail about all these types of foreign nationals and about the difference between NRI, PIO, and OCI.

Who is NRI and OCI? 

NRI and OCI are two different terms given to Indian immigrants. Let us understand what they denote:  

• NRI: A non-resident Indian (NRI) is an Indian citizen who ordinarily lives outside India for work but still holds an Indian passport.
• OCI: An Overseas Citizen of India is registered as an Overseas Citizen of India (OCI) Cardholder under section 7A of the Citizenship Act, 1955.

Who is Eligible to be an OCI?

The following types of foreign nationals are eligible to register themselves as Overseas Citizen of India (OCI) Cardholders:

• Those who were citizens of India at the time of, or after the making of the Indian Constitution on 26th January 1950 or 
• Those who became eligible to be citizens of India on 26th January 1950 or
• Who belonged to any territory that integrated with the Union of India after Indian independence on 15th August 1947 or
• Who is a ward or a descendent of such a citizen or
• Who is a minor offspring of such Indian citizens mentioned above or
• Who is a minor child and whose one or both parents are citizens of India or
• Spouse of an Indian citizen of a foreign nationality or 
• Spouse of foreign origin of an OCI Cardholder registered under section 7A of the Citizenship Act 1955 and whose marriage has been registered and continued for a continuous period of not less than two years immediately preceding the presentation of their application.

Who is a PIO?

A person of Indian origin (PIO) is one who or whose ancestors were Indian nationals and who currently holds a foreign country’s citizenship, i.e. they hold a foreign passport.

PIO is the old term for an individual who or whose ancestors were Indian nationals but currently holds a foreign nationality. 

The PIO scheme has now been discontinued.  People holding PIO cards can now register as Overseas Citizens of India Cardholders u/s 7A of the Citizenship Act, 1955.

What is the Difference Between NRI, PIO and OCI?

The primary difference between NRI, PIO and OCI is nationality. 

Both Non-Resident Indians and Overseas Citizens of India are of Indian origin. However, the difference between them is that while an NRI ordinarily resides outside India and still holds an Indian passport, an overseas citizen of India holds a foreign country’s passport and is, hence, a foreign citizen.

The term “PIO” is an acronym for Persons of Indian origin, who were earlier registered under the 2002 PIO Scheme. However, this scheme was discontinued in 2015 and replaced by the Overseas Citizen of India registration. 

What are the Benefits of Being an OCI Cardholder?

There are various benefits that OCI cardholders can enjoy. Some of them are listed below:

• A single visa can enter India multiple times. However, OCI Cardholders require a special permit from the Indian government through an Indian mission, post, or FRRO to do research work in India.
• OCI Cardholders don’t require registration with the Foreigners Regional Registration Officer (FRRO) or Foreigners Registration Officer (FRO) for their entire stay in India.
• They can enjoy the same benefits as NRIs regarding all economic, financial, and educational facilities available to them.
• OCI Cardholders shall be treated similarly to the NRIs in the matter of inter-country adoption of Indian children.
• Besides, OCI cardholders are treated the same as resident Indians about tariffs on air fares in domestic sectors in India.
• In addition, OCI Cardholders are levied the same entry fee as domestic Indian visitors to visit the national parks and wildlife sanctuaries in India.

All the benefits mentioned above are given to the OCI cardholder at par with the Indian citizens, subject to notifications issued by the Indian Government from time to time. These benefits were previously unavailable to PIO cardholders.

Do OCI Require you to Hold a Special Bank Account?

Yes. OCI and NRI cardholders are required to hold a Non-Resident Ordinary NRO account. This is a type of account where NRIs and OCIs can manage their income and deposits earned in India. with an NRO account for OCI/NRI, they can easily open savings accounts, current accounts, and Fixed Deposits in India.

These are the key benefits OCI cardholders enjoy as foreign nationals.

However, if you have relatives who are NRIs or OCIs and wish to visit them, you should prepare to safeguard your trip against financial loss due to an emergency.

Secure your Trip Abroad with Travel Insurance

Visiting your NRI or OCI relative living abroad is necessary to keep in touch with them, but what about your financial safety? The only solution to this problem is to cover your trip under a comprehensive travel insurance plan, such as the Care Explore plan by Care Health Insurance. This Travel insurance plan provides coverage against all medical and non-medical emergencies while you are staying abroad at your relatives’ home.

However, it is always advised that you carefully review the Care Group travel insurance policy brochure and prospectus. You can also talk to the customer care team for complete guidance on claim settlement. 

>> Also Read: Which travel Insurance covers passport loss?

Disclaimer: Plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.