Frequently Asked Questions
Who is a non-resident Indian (NRI)?
Answer:
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. organisations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated 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).
Can NRI buy property in India?
Answer:
The Reserve Bank of India (RBI) has granted general permission to NRIs, PIOs and foreign citizens to invest in real estate for their residential purpose. The general permission covers only residential and commercial property.
Can NRI purchase commercial properties in India?
Answer:
NRIs can purchase commercial, as well as residential property in India (except for agricultural land, farm house & plantation property) 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.
In this case, a declaration has to be 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.
Can NRI sell the residential commercial property in India without the permission of RBI?
Answer:
Yes, NRIs can sell their residential/commercial property without the permission of RBI. If the property is purchased by another PIO, funds towards the purchase consideration have to be remitted to India or paid out of balances in NRE/FCNR accounts.
What are the various facilities available to NRI's / OCBS?
Answer:
NRIs/OCB’s 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
Can NRIs acquire or dispose residential property by way of gift?
Answer:
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.
