is an NRI?
Under the Foreign Exchange Regulation Act of 1973, Non-Resident
Indians are Indian citizens who stay abroad for employment
or for carrying on business or vocation outside India or
for any other purpose in circumstances indicating an indefinite
stay abroad, or
Government servants who are posted abroad on duty with the
Indian mission and similar other agencies set up abroad
by Government of India where the officials draw their salaries
out of Government resources, or
Government servants deputed abroad on assignments with foreign
Governments or regional/international agencies like the
World bank, International Monetary Fund (IMF), World Health
Organisation (WHO), Economic and Social Commission for Asia
and the Pacific (ESCAP), or
Officials of State Governments and public sector undertakings
abroad on temporary assignments or posted to their branches
or offices abroad.
Can NRI avail
of Home Loans back in India?
The Reserve Bank of India has issued certain guidelines
for granting loans to Non-Resident Indians by Housing
Finance Company. The guidelines are:
amount should not exceed 85% of the cost of the dwelling
which is the cost of the dwelling unit can be financed,
less the loan amount, can be met from direct remittances
from abroad through normal banking channels, from the
Non-Resident (External) account in India and /or the Non-Resident
(Ordinary) account in India.
of the loan, comprising of principal and interest including
all charges are to be remitted to HDFC from abroad through
normal banking channels, from the Non-Resident (External)
account in India and /or the Non-Resident (Ordinary) account
Can I buy
immovable property in India?
of immovable property
of immovable property by NRI's holding Indian passport:Non-Resident
Indians holding Indian passport do not require prior permission
of Reserve Bank of India to buy residential or commercial
immovable property in India.
consideration may be paid either by remittance of funds
from abroad through normal banking channels or out of
of Indian nationality do not require any permission for
acquisition, transfer or disposal by way of gift of immovable
property which is not a farmhouse or agricultural land
or plantation property. Declaration on form IPI-7 for
acquisition of commercial property for carrying on any
industrial, commercial or trading activity by their property/partnership
firm in India is required to be filed with RBI within
90 days from the date of purchase.
of immovable property by foreign citizens of Indian origin
general permission to Non-Resident Indians holding foreign
passport, the Reserve Bank of India has allowed them to
acquire, hold, transfer or dispose of by way of sale or
inheritance, immovable properties situated in India.
citizen shall be deemed to be of Indian origin, if
he held an
Indian passport at any time; or
he or his
father or paternal grandfather was a citizen of India
by virtue of the Constitution of India or the Citizenship
Act, 1955 (57 of 1955).
of immovable property by foreign nationals of Non-Indian
of Non-Indian origin (whether resident in India or not)
are permitted on application to Reserve Bank of India
(Form No- IPI 1) to acquire , hold, transfer or dispose
of immovable property provided the following conditions
consideration is made out of foreign exchange remitted
from abroad in any convertible foreign currency through
normal banking channels.
to be acquired is only for bonafide residential use.
National of Non-Indian origin will provide an undertaking
not to repatriate the sale proceeds at any future date.
in ready-built house is permitted.
in vacant plot is not allowed.
for residential purposes is allowed.
will be made on a case by case basis only.
In the absence
of a specific circular, it may be necessary for a foreigner
of Non-Indian origin to obtain RBI's prior permission
before letting out the residential premises acquired by
to Foreign Companies
Bank of India has given general permission to foreign
companies to acquire or hold any immovable property which
is necessary for or incidental to any activity carried
on in India. The foreign companies engaged in manufacturing
or trading activity will be permitted to open branches
in India for the following purposes:
the parent company/ other companies in various matters
in India. e.g. acting as buying/selling agents in India.
research work in which the parent company is engaged provided
the results of the research are made available to Indian
export and import trading activity; and
technical and/or financial collaboration between Indian
companies and overseas companies.
resell their immovable property in India? Can NRI's let
out their immovable properties in India?
to let out Immovable Property
Bank of India has also granted general permission to Non-Resident
Indian citizens of Indian origin, to let out their residential
properties acquired for their bonafide residential purpose
but which on account of their residence abroad, are not
required for their immediate residential purpose.
Sale of immovable
Bank of India has granted general permission to Non-Residents
holding Indian passports and foreign citizen of Indian
origin, whether resident in India or not, to dispose of
by sale or inheritance immovable properties situated in
India subject to certain conditions. However , such property
can be sold to another foreign national of Indian origin
provided funds towards purchase consideration are either
remitted to India or paid out of balances in NRE/FCNR
repatriate their funds invested in immovable property
The Reserve Bank of India has allowed general permission
to Non-Residents holding Indian passports and foreign
citizen of Indian origin to repatriate original investments
equivalent foreign exchange in residential/commercial
properties after obtaining prior approval subject to maximum
of two houses, provided that:
properties are purchased on or after 26th May 1993.
have been purchase from the remittances from abroad or
from NRE/FCNR account in India.
are not transferred or disposed of by way of sale for
a period of three years from the date of final purchase
deed or from the date of payment of final instalment where
the agreement for purchase so provides.
of sale proceeds equivalent to the original investment
in foreign exchange, if sold after three years, will be
allowed to be repatriated outside India and the balance
amount of sale proceeds of the property should be credited
to seller's Non-Resident Ordinary (NRO) Account with an
authorised bank in India.
intending to repatriate the original investment made in
residential immovable properties shall submit it within
a period of 90 days of sale of the property an application
in Form IPI 8 to the below address.