NRI FAQs

1. Who Is Non- Resident Indian (NRI) And Person Of Indian Origin (PIO)?

An Indian Citizen who stays abroad for employment/carrying on business or vacation 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 Government and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizen of Indian Origin are treated on par with non-residential Indian Citizen (NRIs) for the purpose of certain facilities. A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal), is deemed to be of the Indian Origin if he held and Indian Passport at any time, or he or his father or parental grand-father was a citizen of India by virtue of the (Constitution of India or the Citizenship Act, 1955(57 of 1955).

2. Is Permission Required From RBI To Acquire/Purchase Immovable Property In India?

No. 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).

3. What Is The Manner And Formalities Required Towards The Payments To Be Done Under General Permission Guidelines?

The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE / FCNR accounts maintained with banks in India. 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 immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.

4. What are the documents for buying property?

• Pan card (Permanent account number) • OCI/PIO card (In case of OCI/PIO) • Passport (In case of NRI) • Passport size photographs • Address proof

5. What arethe eligibility rules for NRI/PIO/OCI eligible for acquiring Housing loans to buy property from any Indian Bank?

An authorised dealer or a housing finance institution in India approved by the National Housing Bank may provide housing loan to a non-resident Indian or a person of Indian origin residing outside India. for acquisition of a residential accommodation in India, subject to the following conditions, namely: (a) The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person residing in India. (b) The loan amount shall not be credited to Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident non-repatriable (NRNR) account of the borrower. (c) The loan shall be fully secured by equitable mortgage by deposit of title deal of the property proposed to be acquired, and if necessary, also be lien on the borrower’s other assets in India.

6. What are the list of documents required for home loans Salaried individuals

Copy of employment contract Latest Salary slip Latest work permit Bank statement for 4 months or NRE/NRO a/c6 months statement Passport/visa copy Utility bill for address proof PIO/OCI card Power of Attorney (if applicable, in respective bank’sformat) Customer credit check report Property agreement duly registered or other related docs Income Tax returns last 2 years Self-employed Individuals Balance sheets and P&L a/c of thecompany for last 3 years Bank a/c statements for last 6 months forcompany and individual, bothIncome tax returns (3 years) Passport/visa copy Utility bill for address proof PIO/OCI card Power of Attorney (if applicable, inrespective bank’s format) Credit check report Property agreement or other related docs

4. Can Such Property Be Sold Without Permission Of Reserve Bank?

Yes, Reserve Bank has granted general permission for sale of such property. However whether 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 balance in NRE / FCNR accounts.

5. Can Sale Proceeds Of Such Property Be Remitted Out Of India?

With respect to residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993 will have to be credited to the ordinary non-resident rupee account of the owner of the property.

6. What Is The Procedure For Seeking Repatriation And Conditions Required Towards The Sale Proceeds?

Applications for necessary permission for remittance of sale proceeds should be made inform IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property. Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed from the date of payment of final installment of consideration amount, whichever is later.

7. Can Foreign Citizen Of Indian Origin Acquire Or Dispose Of Such Property By Way Of Gift To Relatives/Registered Charitable Trust/ Organizations In India Or Abroad?

Yes. Reserve Bank has granted general permission to foreign citizen 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, subject to compliance with applicable tax laws.

8. Can The Properties Be Given On Rent If Not Required For Immediate Use?

Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation.