RBI Guidelines

  • Acquisition and Transfer of Immovable Property in India by a Person Resident outside India

 

Acquiring immovable property in India by persons resident outside India is regulated in terms of Section 6(3) (i) of the Foreign Exchange Management Act (FEMA), 1999 as well as by the regulations contained in Notification issued by RBI via Notification No FEMA. 21/2000-RB dated May 3, 2000, as amended from time to time. The persons resident outside India are categorized as Non- Resident Indians (NRIs) or a foreign national of Indian Origin (PIO) or a foreign national of non-Indian origin. A person resident in India who is not a citizen of India is also covered by the relevant Notifications.

Under the general permission available, the following categories can freely purchase immovable property in India:

i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India

ii) Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

1. at any time, held Indian passport, or

2. who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India

An NRI / PIO who has purchased residential/commercial property under general permission is not required to file any documents with the Reserve Ban.

  • Yes, but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in Indiawho is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by Reserve Bank in consultation with the Government of India.
  • 1 Under the general permission available, the following categories can freely purchase immovable property in India:
    i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India
    ii) Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who1. at any time, held Indian passport, or
    2. who or either of whose father or grandfather was a citizen of India by virtue of the Constitutionof India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercia property and not for purchase of agricultural land / plantation property / farm house in India.
  • (a) NRI can sell property in India to-
    i) a person resident in India or
    ii) an NRI or
    iii) a PIO.(b) PIO can sell property in India toi) a person resident in India.
    ii) an NRI or
    iii) a PIO – with the prior approval of Reserve Bank
  • i) NRI / PIO can mortgage to:
    (a) an authorised dealer / housing finance institution in India – without the approval of Reserve Bank.
    (b) a party abroad – with prior approval of Reserve Bank.ii) a foreign national of non-Indian origin can mortgage only with prior approval of Reserve Bank.iii) a foreign company which has established a Branch Office or other place of business in accordance with FERA / FEMA regulations has general permission to mortgage the property with an authorized dealer in India.