FAQs for NRI

1.      Who is an NRI?

An NRI is a citizen of India who holds an Indian passport and has been immigrated to another country over six months for work or residence etc.

2.      Who is a PIO?

A person of Indian Origin (PIO) means an individual who:

• held an Indian passport at time or,
• who/whose father/paternal grandfather was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955

3.      Who determines whether a person is resident of India or not?

Under FEMA, the status is determined by the operation of law.

4.      What types of NRI accounts are allowed to be maintained in India?

 Two types of accounts are allowed to be maintained in India:

·         Non-Resident (external) Rupee Account (NRE)

·         Non-Resident Rupee Account (NRO).

Funds in NRE account are repatriable.

5.      Can an NRI authorize a close relative to operate his NRE account?

Yes he/she can after providing a letter of authorization.

6.      What are the various facilities available to NRIs/OCBs?

NRIs/OCBs can avail following facilities:

•        Maintaining of bank accounts in India
•               Investments in securities/shares and deposits with Indian firms/companies
•        Investments in immovable properties in India

7.      Can an NRI or PIO avail housing loan in rupees from his employer in India?

Yes, subject to certain terms and conditions.

8.      Can an NRI/PIO/Foreign National sell his residential/commercial property?

TYPE OF CITIZEN	STATUS	CAN SELL TO WHOM	CONDITIONS
NRI	Yes	to NRI/PIO/Foreign National	Nil
PIO	Yes	to a resident of India/NRI/PIO	prior approval of RBI
Foreign National	Yes	to NRI/resident of India/PIO	prior approval of RBI

9.      Can a NRI gift his property?

TYPE OF CITIZEN	STATUS	CONDITIONS
NRI	Yes	Nil
PIO	Yes	Nil
Foreign National	Yes	prior approval of RBI

10.  Can an NRI/PIO/Foreign National mortgage his/her residential/commercial property in India?

Yes, the property can be mortgage keeping following conditions in mind:

·         Can be mortgage to:

(1)   an authorized dealer/the housing finance institution in India without the approval of RBI.

(2)   a bank abroad, with prior approval of RBI

·         A Foreign National of non-Indian origin can mortgage a residential/commercial property only with prior approval of RBI.

·         A Foreign company which has established a branch office or other place of business in accordance with FERA/FEMA regulations has generated permission to mortgage the property with an authorized dealer in India.

11.  Can NRI/PIO rent out the residential/commercial property purchased out of Foreign exchange/ rupee funds, if not required for immediate use?

Yes, rent received being current income may be credited to NRE/NRO account or remitted abroad.

12.  How can an NRI/PIO make payment for purchase of resident/commercial property in India?

Payment can be made by NRI/PIO out of:

(1)   Funds remitted to India through normal banking channels or

(2)   Funds held in NRE/FCNR(B)/NRO accounts maintained in India

No payment can be made either by traveler’s cheque or by Foreign currency notes or by other modes except from those mentioned above.

Property in Gurgaon