WHO IS A NON-RESIDENT INDIAN (NRI) AND WHAT IS AN OCB?
A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for employment, residence, education or any other purpose. Non-resident foreign citizens of Indian Origin are treated on par with NRI’s and are offered the same facilities.
WHAT ARE THE VARIOUS FACILITIES AVAILABLE TO NRI’s?
Various facilities offered to the Nri’s are as follows:
DO NRI’s NEED PERMISSION OF RBI TO PURCHASE IMMOVABLE PROPERTY IN INDIA FOR THEIR RESIDENTIAL USE?
Reserve Bank of India has given permission to the foreign citizens of Indian origin to purchase immovable property in India for their residential use. Hence, they do need to acquire any permission.
WHAT ARE THE FORMALITIES THAT ARE REQUIRED BY FOREIGN CITIZENS OF INDIAN ORIGIN WHILE PURCHASING RESIDENTIAL PROPERTY?
While purchasing a residential immovable property in India, the foreign citizens of Indian origin are required to file a declaration in form IPI 7 with Central Office of Reserve Bank at Mumbai within 90 days from the date of purchase of that immovable property.
IS THERE ANY LIMIT ON THE NUMBER OF RESIDENTIAL IMMOVABLE PROPERTIES THAT MAY BE PURCHASED BY AN NRI?
There are no limits on the number of residential properties that may be bought by an NRI. However, repatriation (the process of converting a foreign currency into the currency of one’s own country) is allowed only in respect of two such properties.
DOES RBI HAVE ANY GUIDELINES FOR LOANS TO NRIs/PIOs?
There are guidelines issued by the Reserve Bank of India for grant of housing loans to NRIs. The guidelines are:
The loan amount shall not exceed 85% of the cost of the housing unit.