Who is a NRI?
A NRI is a person resident outside India who is either a citizen of India or a person of Indian origin. For all official purpose the Government of India recognizes an NRI who is away from India for more than 182 days, in a year.
Who is a PIO?
A person of Indian origin means an individual (not being a citizen of Pakistan, Bangladesh, shri Lanka,Afghanistan,China,Iran,Nepal or Bhutan) who:
- Held an Indian Passport at any time, or
- Who or whose father or paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.
What are the types of Property can a NRI/PIO purchase in India?There are no restrictions on the purchase of any numbers of Residential/Commercial Properties (except agricultural land/farm house/plantation)
Does NRI/PIO require permission of The Reserve Bank to acquire residential/ commercial property in India?No. All Indian citizens are entitled to buy property in India, irrespective of their residential status.
How should the purchase of residential immovable property be paid for by NRI/ PIO under the general permission?
The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR(B)/NRO accounts maintained with banks in India.
Is there any Lock in period for such investment?
Currently there is no lock in period.
Can NRI/PIO sell their purchased property without the permission of Reserve Bank?
Yes.
Reserve Bank of India has granted general permission for sale of such property to the following categories:-
To a NRI
To a PIO (If the seller is a PIO, then a prior approval is required from RBI)
To Indian Resident.
Can the properties (residential/commercial) be given on rent if not required for immediate use?
Yes. The Reserve Bank has granted general permission for letting out any immovable property in India.
Does any document require to be examined before buying a property?
Before you buy a property, you must get a title and document search report properly conducted by hiring a competent advocate.
What documents need to be verified before making any purchase of a property?
- Approved Layout Plan
- Approved Building Plan
- Title Ownership Documents
- Title Search Report
We always welcome an enquiry from a NRI/PIO in respect of any property to be purchased/sold.
