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Q. Who is a
Foreign Exchange Regulation Act of 1973 a NRI as "a person who
has gone out of India or who stays outside India, in either
case - for or on taking up employment outside India, or
carrying on outside India a business or vocation outside
India, or for any other
purpose, in such circumstances as would indicate his intention
to stay outside India for an uncertain period."
the permission of The Reserve Bank Of India required for NRIs
to purchase residential or commercial property in India?
Q. Is an
NRI who has purchased residential or commercial property
required to file any documents with Reserve Bank of
NRI who has purchased residential / commercial property under
general permission is not required to file any documents with
the Reserve Bank."
Q. What are the Reserve Bank
guidelines regarding Investment in immovable Property by a
NRI: "May acquire
immovable property in India other than agricultural/plantation
property or a farmhouse out of repatriable and non-repatriable
respect of such investments NRIs are eligible to repatriate
Sale proceeds of immovable property acquired in India to the
extent of repatriable funds used for acquiring the property,
without any lock-in period, up to two residential properties.
The balance will be repatriable through NRO Account subject to
conditions mentioned at item (I) (d).
of (a) application / earnest money / purchase consideration
made by house-building agencies/seller on account of
non-allotment of flats / plots and (b) cancellation of
booking/deals for purchase of residential/commercial
properties, together with interest, net of taxes, provided
original payment is made out of NRE/FCNR(B) account/inward
Loan in rupees availed of by NRIs from ADs / Housing Financial
Institutions can be repaid by the close relatives in India of
foreign citizens of Indian origin acquire commercial
properties in India?
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."
Q. Can a
NRI returning back to India hold or transfer immovable
property situated outside India?
returning NRI : " may continue to hold, own, transfer or
invest in foreign currency, foreign security or any immovable
property situated outside India, if such currency, security or
property was acquired, held or owned when resident outside
India." "may open, hold
and maintain with an authorized dealer in India a Resident
Foreign Currency (RFC) Account to transfer balances held in
NRE/FCNR(B) accounts. Proceeds of assets held outside India at
the time of return, can be credited to RFC account. The funds
in RFC accounts are free from all restrictions regarding
utilization of foreign currency balances including any
restriction on investment in any form outside
Q. What are the criteria regarding
availment of home loans for NRIs in
According to Reserve Bank guidelines for NRIs The loan amount
shall not exceed 85% of the cost of the dwelling
contribution, which is the cost of dwelling unit financed less
the loan amount, can be met from direct remittances from
abroad only through normal banking channels, your Non-Resident
(External) [NR (E)] Account and /or Non-Resident (Ordinary)
[NR (O)] account and /or Non-Resident Special Rupee account
[NRSR] in India.
of the loan, comprising of the principal and interest
including all the charges are to be remitted from abroad only
through normal banking channels, your Non-Resident (External)
[NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)]
account and /or Non-Resident Special Rupee account [NRSR] in
Q. Can a NRI give a Power of Attorney
to a person in India for completion of loan formalities on
very well understand that as an NRI you have a different set
of needs with respect to your real estate management and
investment requirements and we also understand that it needs
special set of services to cater to your requirements. The
good news from India is that government has allowed 100%
repatriation for NRIs.
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.