| Q1. |
Is
it mandatory for non-resident
Indian citizens to obtain permission
of Reserve Bank to acquire residential/commercial
property in India? |
| Ans. |
No. |
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|
| Q2. |
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 properties in India
for their bona fide residential
purpose. They are, therefore,
not required to obtain separate
permission of Reserve Bank. |
| |
|
| Q3. |
What are the formalities
required to be completed by foreign
citizens of Indian origin for
purchasing residential immovable
property in India? |
| 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
along with a certified copy of
the document evidencing the transaction
and bank certificate regarding
the consideration paid. |
| |
|
| Q4. |
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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|
| Q5. |
Can sale proceeds
of such property 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. |
| |
|
| Q6. |
Are any conditions
required to be fulfilled if repatriation
of sale proceeds is desired? |
| Ans. |
Applications
for repatriation of sale proceeds
are considered when the sale takes
place after three years from the
date of final purchase deed or
from the date of payment of final
installment of consideration amount,
whichever is later. |
| |
|
| Q7. |
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 the
residential properties in India
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. |
| |
|
| Q8. |
Can foreign citizens
of Indian origin acquire commercial
properties in India? |
| Ans. |
Yes. |
| |
|
| Q9. |
Can they dispose
of such properties? |
| Ans. |
Yes. |
| |
|
| Q10. |
Are NRIs permitted
to maintain accounts in rupees
and in foreign currency? |
| Ans. |
Yes. Accounts
can be maintained by NRIs in rupees
as well as in foreign currency.
Accounts in foreign currencies
can, however, be maintained with
authorities dealers only. |
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|
| Q11. |
What are the different
types of rupee accounts permitted
to be maintained? |
| Ans. |
Three types
of rupee accounts Viz. Non-resident
(External) Rupee Accounts (NRE
account), Ordinary Non- resident
Rupee Account (NRO accounts) and
Non-resident (Non-repatriable)
Rupee Deposit accounts (NRNR)
are permitted to be maintained. |
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|
| Q12. |
Are NRIs entitled
to home loans? |
| Ans. |
Yes, most
of the premier financial institutions
offer home loans to NRIs as per
their terms and conditions. |
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