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NRI
GUIDELINES |
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 DIASPORA’S GUIDE TO RBI CONTROLS
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Where can one find regulations/directions issued by the Reserve Bank of India for acquisition and transfer of immovable property in India by a person resident outside India?
Regulations regarding acquisition and transfer of immovable property in India by a person resident outside India has been notified vide RBI Notification No. FEMA 21/2000-RB dated May 3, 2000 as amended vide Notification No. FEMA 64/2002-RB dated June 29, 2002 and Notification No. FEMA 65/2002-RB dated June 29, 2002 and relevant directions issued in the form of A.P. (DIR Series) Circulars. These are available on the RBI website: www.fema.rbi.org.in
 Under the extant foreign exchange regulations to whom is general permission available for buying immovable property in India?
General Permission is available to purchase only a residential/commercial property in India to a person resident outside India who is a citizen of India (NRI) and who is a Person of Indian Origin (PIO).
Who is a Person of Indian Origin (PIO)?
For the purpose of acquisition and transfer of immovable property in India, a PIO 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 (i) at any time, held Indian passport; or (ii) 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).
Is an NRI/PIO, who has purchased residential/commercial property under general permission, required to file any documents with the Reserve Bank of India?
An NRI/PIO who has purchased residential/commercial property under general permission is not required to file any documents with the RBI.
Is there any restriction on the number of residential/commercial property that an NRI/PIO can purchase under the general permission available?
There is no restriction on number of residential/commercial property that an NRI/PIO can purchase under the general permission available.
Can the name of a foreign national of non-Indian origin be added as a second holder to a residential/commercial property purchased by NRI/PIO?
No.
Can a foreign national of non-Indian origin resident outside India acquire any immovable property in India by way of purchase?
No. Under section 2 (ze) of the Foreign Exchange Management Act, 1999 'transfer' includes among others, 'purchase'. Therefore, a foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of purchase.
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| A person resident outside India can hold immovable property inherited from a person resident in India as per the Foreign Exchange Management Act |
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Can a foreign national of non-Indian origin acquire residential property on a lease in India?
Yes. A foreign national of non-Indian origin, including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan, may acquire only residential accommodation on lease, not exceeding five years for which he/she does not require prior permission of RBI.
Can a person resident outside India (i.e. an NRI or a PIO or a foreign national of non-Indian origin) acquire agricultural land/plantation property/farm house in India by way of purchase?
No. A person resident outside India cannot acquire by way of purchase agricultural land/plantation property/farmhouse in India.
Can an NRI/PIO acquire residential/commercial property by way of gift under the general permission available?
Yes. Under general permission available NRI/PIO may acquire residential/commercial property by way of gift from a person resident in India or a NRI or a
PIO.
Can a foreign national of non-Indian origin resident outside India acquire residential/commercial in India by way of gift?
No. Under section 2 (ze) of the Foreign Exchange Management Act, 1999 'transfer' includes among others, 'gift'. Therefore, a foreign national of non-Indian origin resident outside India cannot acquire residential/commercial property in India by way of gift.
Can a person resident outside India (i.e. an NRI or a PIO or a foreign national of non-Indian origin) acquire agricultural land/plantation property/farm house in India by way of gift?
No. A person resident outside India cannot acquire agricultural land/plantation property/farm house in India by way of gift.
Can a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) hold any immovable property in India acquired by way of inheritance from a person resident in India?
Yes. A person resident outside India can hold immovable property acquired by way of inheritance from a person resident in India as per the provisions of Section 6(5) of the Foreign Exchange Management Act, 1999.
Under general permission available, to whom can an NRI transfer by way of sale his residential/commercial property?
A: An NRI can transfer by way of sale residential/commercial property in India to a person resident in India or to an NRI or a
PIO.
Under general permission available, to whom can a PIO transfer his residential/commercial property by way of sale?
A PIO can transfer by way of sale residential/commercial property in India only to a person resident in India.
Can a PIO transfer by way of sale his residential/commercial property to a NRI or a
PIO?
No. He would need to seek prior Reserve Bank approval for transfer by way of sale residential/commercial property in India to an NRI or
PIO.
Can a foreign national of non-Indian origin whether resident in India or outside India transfer by way of sale residential/property in India acquired with the specific permission of the RBI to a person resident in India or outside India?
No. A foreign national of non-Indian origin whether resident in India or outside India would need to seek prior RBI approval for transfer by way of sale residential/property in India acquired with the specific permission of Reserve Bank to a person resident in India or outside India.
Under general permission available to whom can
NRI/PIO transfer by way of sale his agricultural land/plantation property/farm house in India?
Under the general permission available an NRI/PIO may transfer by way of sale his agricultural land/plantation property/farm house in India to a person resident in India who is a citizen of India.
Can a foreign national of non-Indian origin resident outside India transfer by way of sale agricultural land/plantation property/farmhouse acquired by him in India?
A foreign national of non-Indian origin resident outside India would need to seek prior approval of the Reserve Bank for transfer, by way of sale, agricultural land/plantation property/farmhouse acquired in India.
Are NRIs permitted to maintain accounts in rupees and in foreign currency?
Yes. Accounts can be maintained by NRIs in rupees as well as in a foreign currency. Accounts in foreign currencies can, however, can be maintained with authorities' dealers only.
What are the different types of rupee accounts permitted to be maintained?
Three types of accounts: Non-resident (External) Rupee Accounts
(NRE account), Ordinary Non-Resident Rupee Account (NRO A/c) and Non-Resident (Non-
repatriable) Rupee Deposit Account (NRNR) are permitted to be maintained.
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July 2008
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