1. About NRI
2. NRI Section of RBI
3. FAQs
 
 
 
 
 
 
 
 
Frequently Ask Questions
1. Is it mandatory for non-resident Indian citizens to obtain permission from the Reserve Bank to acquire residential/commercial properly in India?
No
2. Do foreign citizens of Indian origin require the permission of Reserve Bank to purchase immovable property in India for their residential use?
Reserve Bank of India has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain separate permission from the Reserve Bank.
3. In what manner should the purchase consideration for the residential immovable property be paid by foreign citizens of Indian origin, under the general permission?
The purchase consideration should be met either out of inward remittances in foreign exchange, through normal banking channels, or out of funds from NTE/FCNR accounts maintained with banks in India.
4. What are the formalities required to be completed by the foreign citizens of Indian origin for purchasing residential immovable property in India, under the general permission?
They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai, within a period of 90 days from the date of purchase of the immovable property, or final payment of purchase consideration, along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
5. Can such property be sold without the permission of Reserve Bank?
Yes. The Reserve Bank has granted general permission for the sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.
6. Are there any conditions which required to be fulfilled if repatriation of sale proceeds is desired?
Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed, or from the date of payment of final instalment of consideration amount, whichever is later.
7. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?
Yes. The Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative, who may be an Indian citizen or a person of Indian origin, whether resident in India or not, provided gift tax has been paid
8. Can foreign citizens of Indian origin acquire commercial properties in India?
Yes. Under the general permission granted by Reserve Bank, properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin, provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers' 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.
9. Can the properties (residential/commercial) be given on rent, if not required for?
Yes. The Reserve Bank has granted general permission for letting out of any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.
10. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
The Reserve Bank has granted general permission to certain financial institutions providing housing finance, e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to non-resident Indian nationals for acquisition of houses/flats for self-occupation, subject to certain conditions.
Regulations/Directions issued by Reserve Bank of India
11. Where can one find regulations/directions issued by Reserve Bank 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:
12. Is the NRI/PIO, who has purchased residential/commercial property under general permission, required to file any documents with the Reserve Bank of India?
The NRI/PIO who has purchased residential/commercial property under general permission is not required to file any documents with the Reserve Bank.
13. 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 the number of residential/commercial property that an NRI/PIO can purchase under the general permission available.
14. 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.
15. 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, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, may acquire only residential accommodation on lease, not exceeding five years for which he/she does not require prior permission of Reserve Bank of India.
Acquisition of immovable property in India by way of gift by a person resident outside India
16. Can an NRI/PIO acquire residential/commercial property by way of gift, under the general permission available?
Yes. Under general permission available, an NRI/PIO may acquire residential/commercial property by way of gift from a person resident in India or an NRI or a PIO.
17. 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.
Transfer of immovable property in India, by way of sale by a person resident outside India
18. Under general permission available, to whom can an NRI transfer, by way of sale, his residential/commercial property?
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.
19. Under general permission available, to whom can a PIO transfer his residential/commercial property by way of sale?
PIO can transfer, by way of sale, residential/commercial property in India only to a person resident in India.
20. Can a PIO transfer, by way of sale, his residential/commercial property to an NRI or a PIO?
No. He would need to seek Reserve Bank's prior approval for transfer, by way of sale, residential/commercial property in India to an NRI or a PIO.
 
Home | Company | Projects | NRI Section | News & Events | Careers | Sitemap | Contact
© ABW Infrastructure Ltd, 2010. All Rights Reserved.