Who is an NRI (Non-Resident Indian)?
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.
Who is a PIO (Person of Indian Origin)?
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:
What kinds of bank accounts can NRIs maintain?
Do FEMA (Foreign Exchange Managmement Act) rules and policies permit NRIs and PIOs to acquire immovable property 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.
What are the benefits offered to Non Resident Indians/ People of Indian Origin/ Overseas Commercial Bodies under the Liberalized Exchange Policy in the context of immovable property?
Can the sale proceeds of immovable property in India be repatriated?
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.
Can the Non Resident Indian avail of housing loans using immovable property in India as security?
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:
What security must Non Resident Indians provide?
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.
Can Non Resident Indians give the power of attorney to a person of their choice, in India, in order to complete loan formalities on their behalf?
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.
Can the house acquired by a Non Resident Indian be let out?
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