Que: What are the various facilities available to NRIs/OCBs?

A: NRIs/OCBs are granted the following facilities :

Maintenance of bank accounts in India.
Investments in securities/shares of, and deposits with, Indian firms/companies.
Investments in immovable properties in India.
INVESTMENT IN IMMOVABLE PROPERTY

Que: Do non-resident Indian citizens require permission of Reserve Bank to acquire  residential/commercial property in India?

A: No. An Indian citizen resident outside India does not require any permission to acquire any immovable property in India other than agriculteral/plantation property or a farm house. However the purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.

Que: Do foreign citizens of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use?

A: Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agriculteral land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration.

Que: In what manner the purchase consideration for the immovable property should be paid by foreign citizens of Indian origin under the general permission?

A: 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.

Que: Can such property be sold without the permission of Reserve Bank?

A: 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 non-resident accounts maintained with banks in India.