Best Finance Company - Home Loan, Personal Loan &. . . More

NRI Corner


  • Who is a non-resident Indian(NRI)?

    Ans:- In Indian Citizen who stays abroad for employment / carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non resident. (Persons posted in U.N. organizations and official deputed abroad by Central / State governments and Public Sector undertaking on temporary assignments are also treated as Non- resident). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian Citizens (NRIs) for the purpose of certain facilities. For the purpose of availing of the facilities of opening and maintenance of bank accounts and investments in shares / securities in India. A foreign citizen other than citizen of Pakistan or Bangladesh is deemed to be of Indian origin, if He, at any time, held an Indian passport, or He or either of his parents or any of his grant parents was citizen of India by virtue of the constitution of India Citizenship Act, 1955 (57 of 1955). Note- Spouse not being a citizen of Pakistan or Bangladesh) of an India Citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purpose the bank accounts are opened or investments in share/ securities in India are made by such persons only jointly with their NRI spouses. For Investments in immovable properties a foreign citizen other than citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal is deemed to be of Indian origin if he held an Indian passport at any time or he or his father or his parental grand-father was a citizen of India by virtue of the constitution of India or the Citizenship Act, 1955.

  • Do forein citizen of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use ?

    Ans:- 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 prior permission of Reserve Bank.

  • 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 toward the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

  • 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 proceed up to the original investment 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 of May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.

  • 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 any immovable property in India. The rental income can be deposited in NRE/NRO account and are eligible for repatriation.