NRI Zone

GENERAL QUESTIONS

NRI is citizens of India who holds an Indian Passport and has temporarily migrate to another country for employment, residence, education or any other purpose.

All persons of Indian origin who have passport of any other country except Pakistan, Bangladesh, Afghanistan, Nepal, Bhutan, China, Sri Lanka or any other country specified by the government, are known as PIO and eligible for PIO Card if:

  1. He/She had any time held an Indian passport.
  2. He/She or either of his/her parents or grandparents are the citizen of India.
  3. He/She is a spouse of a citizen of India.

  1. Ordinary Non-Resident Rupee Accounts (NRO Accounts)
  2. Non-Resident (External) Rupee Accounts (NRE Accounts)
  3. Foreign Currency (Non –Resident) Accounts (Banks) (FCNR (B) Accounts)
  4. Non-Resident (Non-Repatriable) Rupee Deposit Accounts (NRNR Accounts)
  5. Non-Resident (Special) Rupee Accounts with banks in India

Yes, under the general permission to NRIs/PIOs holding foreign passport, the Reserve Bank of India has allowed them to acquire, hold, transfer or sale immovable properties situated in India. NRIs/PIOs who have purchased residential/commercial properties are not require any documents with the Reserve Bank of India.

  1. NRIs are permitted to transfer any immovable property in India to a resident person, and any immovable property other than agricultural or plantation property or farmhouses, to a NRIs or PIOs.
  2. PIOs are permitted to transfer any immovable property in India other than agricultural land/ farm houses /plantation property to any Indian and to NRIs
  3. Any NRIs who has acquired any immovable property in India for establishing an office or other place of business (excluding a liaison office), is permitted to transfer to an authorized dealer as security.

The sale proceeds of immovable property in India can be repatriated on following conditions. (a) The immovable property was acquired by the seller in accordance with the law of foreign exchange in force at the time of acquisition.
(b) The amount to be repatriated does not exceed the amount paid for the acquisition of the immovable property in foreign exchange received from norml banking
(c) In the case of residential property, the repatriation of sales proceeds is restricted to two properties.
(d) If a non-resident person acquired an immovable property in India when he was a resident or inherited it from a resident, the repatriation of sales proceeds of the property will only be allowed once the Reserve Bank of India has granted permission.
(e) No permission is required for the renting, transfer or gifting of property so long as there is no repatriation of proceeds.

Yes. Authorized dealers and financial housing institutions in India, approved by National Housing Banks, may grant housing loans to NRI and PIO for the acquisition of immovable property in India subject to the following conditions:

  1. The size of the loan, interest rate, fees and other charges as well as the repayment period must be at par with those applicable to housing loans being granted to Indian residents.
  2. The loans must be fully secured by creating an equitable mortgage of the property being acquired, and if necessary, additional liens may need to be placed upon other assets belonging to the borrower in India.

Typically, the security for the loan is a first mortgage of the property being financed, usually by way of deposit of title deeds. Other such collateral security may also be necessary. In addition, interim security may also be required if the property is under construction. Collateral or interim security could be in the form of the assignment of life insurance policies (where the borrower surrenders value at least equal to the loan amount), the pledge of shares and/ or other investments.

Yes, NRIs can give the power of attorney to any citizen of India. The power of attorney should be exercised as per drafts provided by the Housing Finance Company and can be given to a person of your choice in India.

Yes, NRI and PIO are permitted to let out their residential properties in India. Rental income can be credited to their Ordinary Non-Residential (NRO A/c) or Residential Account in India only


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