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1.
Do NRI's require permission of Reserve Bank to transfer
immovable property in India?
No. NRI's do not require any permission to acquire any immovable
property in India other than agricultural / plantation property
or a farm house.
2.
Do NRI's require permission of Reserve Bank to acquire immovable
property in India?
No. NRI's do not require any permission to transfer any
immovable property in India. Permission is required only in the
case of transfering of agricultural or plantation property or
farm house to another citizen of India NRI or PIO.
3.
In what manner the purchase consideration for the immovable
property should be paid by PIO's under the general permission?
Reserve Bank has granted general permission to foreign citizens
of Indian origin, whether resident in India or abroad, to
purchase immovable property other than agricultural land/farm
house/plantation property, in India. They are, therefore, not
required to obtain separate permission of Reserve Bank or file
any declaration.
4.
Do PIO's require permission of Reserve Bank to purchase
immovable property in India for their residential use?
The purchase consideration should be met either out of inward
remittances in foreign exchange through normal banking channels
or out of funds from any non resident accounts maintained with
banks in India.
5.
Can such property be sold without the permission of Reserve
Bank?
Yes. Reserve Bank has granted general permission for sale of
such property. However, where another foreign citizen of Indian
origin purchases the property, funds towards the purchase
consideration should either be remitted to India or paid out of
balances in non-resident accounts maintained with banks in
India.
6.
Can sale proceeds of such property if and when sold be remitted
out of India?
In the event of sale of immovable property other than
agricultural land/farm house/plantation property in India by a
NRI or PIO, the authorized dealer may allow repatriation of the
sale proceeds outside India, provided all the following
conditions are satisfied: -
• The immovable property was acquired by the seller in
accordance with the provisions of the Exchange Control
Rules/Regulations/Law in force at the time of acquisition, or
the provisions of the Regulations framed under the Foreign
Exchange Management Act, 1999;
• The amount to be repatriated does not exceed (a) the amount
paid for acquisition of the immovable property in foreign
exchange received through normal banking channels or out of
funds held in foreign currency non-resident account or (b) the
foreign currency equivalent, as on the date of payment, of the
amount paid where such payment was made from the funds held in
non-resident external account for acquisition of the property;
and
• In case of residential property, the repatriation of sale
proceeds is restricted to not more than two such properties.
7.
What other facilities are available for repatriation?
Authorised dealers can allow remittance up to USD 1 million for
any purpose, per calendar year from balances in NRO accounts
subject to payment of applicable taxes. The limit of USD 1
million per year includes sale proceeds of immovable properties
acquired by the NRI/PIO's while they were resident in India and
held for a period of 10 years and above. In case the property is
sold after being held for less than 10 years, remittance can be
made if the sale proceeds were held for the balance period in
NRO account or in any other eligible instruments.
8.
Can PIO's acquire or dispose of immovable property by way of
gift?
Yes. Reserve Bank has granted general permission to foreign
citizens of Indian origin to acquire or dispose of immovable
properties other than agricultural land/farmhouse/plantation
property by way of gift from or to an Indian citizen, NRI or PIO.
9.
Can NRI's/PIO's rent out the properties (residential/commercial)
if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out
any immovable property in India. The rental income or proceeds
of any investment of such income is eligible for repatriation
10.
Can NRIs obtain loans for acquisition of a house/flat for
residential purpose from financial institutions providing
housing finance?
Reserve Bank has granted general permission to certain financial
institutions providing housing finance e.g. HDFC, LIC Housing
Finance Ltd., etc., to grant housing loans to NRI's for
acquisition of a house/flat for self occupation subject to
certain conditions. The purpose of loan margin money and the
quantum of loan will be at par with those applicable to housing
loans to residents. Repayment of loan should be made within a
period not exceeding 15 years out of inward remittances or out
of funds held in the investor's NRE / FCNR / NRO Accounts.
11.
Can authorised dealer grant loans to NRIs for acquisition of a
flat/house for residential purposes?
Authorised dealers have been granted permission to grant loans
to NRI's for acquisition of house/flat for self-occupation on
their return to India subject to certain conditions Repayment of
the loan should be made within a period not exceeding 15 years
out of inward remittance through banking channels or out of
funds held in the investors' NRE/FCNR/NRO accounts.
12.
Can authorized dealer grant housing loan to NRI's where he is a
principal borrower with his resident close relative as a
co-applicant / guarantor or where the land is owned jointly by
such NRI borrower with his resident close relative?
Yes. Such housing loans availed in rupees can also be repaid by
the close relatives in India of the borrower.
13.
What are the guidelines for acquisition of agricultural land /
plantation property / farmhouse by NRIs and foreign citizens of
Indian origin?
All requests for acquisition of agricultural land / plantation
property / farm house by any person resident outside India may
be made to The Chief General Manager, Reserve Bank of India,
Central Office, Exchange Control Department, Foreign Investment
Division (III), Mumbai 400 001. |
