NRI Corner

  • Who is a Non-Resident-Indian (NRI)?

    An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments as well as non-temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian origin are treated on par with non- resident Indian citizens (NRIs).

  • Who is a PIO?

    A person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:

    • held an Indian Passport at any time, or
    • Who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.
  • What are the various facilities available to NRIs/OCBS?

    NRIs/OCBs are granted the following facilities:

    • Maintenance of bank accounts in India
    • Investments in securities/shares of, and deposits with, Indian firms/companies
    • Investments in immovable properties in India
  • Who can purchase immovable property in India?

    Under the general permission available, the following categories can freely purchase immovable property in India:

    • Non-Resident Indian (NRI) - that is a citizen of India resident outside India
    • Person of Indian Origin (PIO) - that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who
      • at any time, held Indian passport, or
      • who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercial property.
  • Can NRIs sell the properties they hold in India without the Reserve Bank's permission?

    Yes

  • Can NRIs acquire or dispose residential property by way of gift?

    Yes, the Reserve Bank has granted general permission to NRIs to acquire or dispose of NRI India Properties by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin (PIO) whether resident in India or not.

  • Can NRIs acquire commercial properties in India?

    Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

  • Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

    The Reserve Bank has granted some general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant housing loans to NRI nationals for acquisition of a NRI house/flat for self-occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts.

  • Are there any procedures to buy property in india?

    The Reserve Bank has granted a blanket permission to NRIs to purchase property in India for their residential and commercial purposes. There is also no limit on the number of investments or the quantity of investments that can be made in real estate. The immovable property can be purchased by inward remittances from any place outside India or through funds maintained in NRI accounts in the banks within the country.

    All NRI investments in real estate or immovable properties are considered as transactions that get regulated under the FEMA (Foreign Exchange Management Act). It stipulates that before making a purchase a specified form called the IPI 7 needs to be filed with the central office of the RBI along with the title deed or any other certified copy of the document proving that the NRI has executed an agreement to purchase property within the country. The form has to be filed within 90 days of the purchase of property and has to be accompanied with a bank certificate stating the consideration paid for the purchase. Permissions are generally granted without undue delays if all the relevant papers are submitted.

  • Are there any restrictions to sell my property?

    There are no restrictions to sell your property in India. However, it is best advisable to consult the RBI website for more information as guidelines do keep changing from time to time.

    Are there restrictions to repatriation of realty returns or sale proceeds?

    There are some restrictions and guidelines that RBI has set forth, and these keep changing from time to time. For more details on RBI's current guidelines related to repatriation, please visit the RBI's website.