| Q.1 |
Do non-resident Indian citizens
require permission of Reserve Bank to acquire
residential/commercial properly in India? |
| Ans. |
No. |
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| Q.2 |
Do foreign citizens of Indian
origin require permission of Reserve Bank to
purchase immovable property in India for their
residential use? |
| Ans. |
Yes. However, Reserve Bank has
granted general permission to foreign citizens of
Indian origin, whether resident in India or
abroad, to purchase immovable property in India
for their bona fide residential purpose. They
are,therefore,not required to obtain separate
permission of Reserve Bank. |
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| Q.3 |
In what manner the purchase
consideration for the residential immovable
property should be paid by foreign citizens of
Indian origin under the general permission?. |
| Ans. |
The purchase consideration
should be met either out of inward remittances in
foreign exchange through normal banking channels
or out of funds from NTE/FCNR accounts maintained
with banks in India. |
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|
| Q. 4 |
What are the formalities
required to be completed by foreign citizens of
Indian origin for purchasing residential
immovable property in India under the general
permission. |
| Ans. |
They are required to file a
declaration in form IPI 7 with the Central Office
of Reserve Bank at Mumbai within a period of 90
days from the date of purchase of immovable
property or final payment of purchase
consideration alongwith a certified copy of the
document evidencing the transaction and bank
certificate regarding the consideration paid. |
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| Q. 5 |
Can such property be sold
without the permission of Reserve Bank . |
| Ans. |
Yes. Reserve Bank has granted
general permission for sale of such property.
However, where the property is purchased by
another foreign citizen of Indian origin, funds
towards the purchase consideration should either
be remitted to India or paid out of balances in
NRE/FCNR accounts. |
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|
| Q. 6 |
Can sale proceeds of such
property if and when sold be remitted out of
India? |
| Ans. |
In respect of residential
properties purchased on or after 26th May,1993,
Reserve Bank considers applications for
repatriation of sale proceeds up to the
consideration amount remitted in foreign exchange
for the acquisition of the property for two such
properties. The balance amount of sale proceeds
if any or sale proceeds in respect of properties
purchased prior to 26th May,1993, will have to be
credited to the ordinary non-resident rupee
account of the owner of the property. |
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|
| Q.7 |
Are any conditions required to
be fulfilled if repatriation of sale proceeds is
desired? |
| Ans. |
Applications for repatriation of
sale proceeds are considered provided the sale
takes place after three years from the date of
final purchase deed or from the date of payment
of final instalment of consideration amount,
whichever is later. |
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| Q. 8 |
What is the procedure for
seeking such repatriation? |
| Ans. |
Applications for necessary
permission for remittance of sale proceeds should
be made in form IPI 8 to the Central Office of
Reserve Bank at Mumbai within 90 days of the sale
of the property. |
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|
| Q.9 |
Can foreign citizens of Indian
origin acquire or dispose of residential property
by way of gift? |
| Ans. |
Yes. Reserve Bank has granted
general permission to foreign citizens of Indian
origin to acquire or dispose of properties up to
two houses by way of gift from or to a relative
who may be an Indian citizen or a person of
Indian origin whether resident in India or
not,provided gift tax has been paid. |
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| Q.10 |
Can foreign citizens of Indian
origin acquire commercial properties in India? |
| Ans. |
Yes. Under the general
permission granted by Reserve Bank properties
other than agricultural land/farm
house/plantation property can be acquired by
foreign citizens of Indian origin provided the
purchase consideration is met either out of
inward remittances in foreign exchange through
normal banking channels or out of funds from the
purchasers' NRE/FCNR accounts maintained with
banks in India and a declaration is submitted to
the Central Office of Reserve Bank in form IPI 7
within a period of 90 days from the date of
purchase of the property/final payment of
purchase consideration. |
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| Q.11 |
Can they dispose of such
properties? |
| Ans. |
Yes. |
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| Q. 12 |
Can sale proceeds of such
property be remitted out of India? |
| Ans. |
Yes. Repatriation of original
investment in respect of properties purchased by
foreign citizens of Indian origin on or after
26th May 1993 will be allowed to be remitted up
to the consideration amount originally remitted
from abroad provided the property is sold after a
period of three years from the date of the final
purchase deed or from the date of payment of
final instalment of consideration
amount,whichever is later. Applications for the
purpose are required to be made to the Central
Office of Reserve Bank within 90 days of the sale
of property in form IPI 8. |
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| Q. 13 |
Can the properties
(residential/commercial) be given on rent if not
required for immediate use? |
| Ans. |
Yes. Reserve Bank has granted
general permission for letting out of any
immovable property in India. The rental income or
proceeds of any investment of such income has to
be credited to NRO account. |
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| Q.14 |
Can NRIs obtain loans for
acquisition of a house/flat for residential
purpose from financial institutions providing
housing finance? |
| Ans. |
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
non-resident Indian nationals for acquisition of
houses/flats for self-occupation subject to
certain conditions. |
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| Q. 15 |
Can authorised dealer grant
loans to NRIs for acquisition of a flat/house for
residential purposes? |
| Ans. |
Authorised dealers have been
granted permission to grant loans up to
non-resident Indian nationals 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 investments' NRE/FCNR accounts. |
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| Q.16 |
Can Indian companies grant loans
to their NRI staff? |
| Ans. |
Reserve Bank permits Indian
firms/companies to grant housing loans to their
employees deputed abroad and holding Indian
passport subject to certain conditions. |
