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NRI Frequently Asked Questions
1.) Do NRI Indian citizens require permission of The Reserve Bank of India to acquire
residential or commercial property in India?
No.
2.) Do foreign citizens of Indian heritage necessitate permission of the Reserve Bank to
procure immovable NRI property in India for their residential use?
Yes. The Reserve Bank has grant approval to NRI citizens, whether resident in India or in a foreign country can purchase immovable property in India for their officially permitted residential purpose and a separate permission of The Reserve Bank of India is not required.
3.) Who is a considered as foreign citizen of Indian heritage?
A foreign citizen of Indian origin other than native of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka and Nepal is considered to be of Indian origin if:
a.) He held an Indian Passport at any time or;
b.) He or his father or ancestry is a citizen of India by high merit of the constitution of
India according to the Citizenship Act, 1955.
4) In what way should the purchase consideration for a residential immovable
property be paid by foreign citizens of Indian heritage under the general
permission?
Purchasing a residential immovable property consideration should be met either out of inward payment in foreign exchange through standard banking channels, or out of funds from NRE/FCNR accounts uphold by banks in India.
5) What are the rules and regulations required while a residential immovable NRI
property is purchased by a foreign citizen of India under general permission?
Yes, general permission granted by Reserve Bank of India to purchase properties other than agricultural land, farmhouse and agricultural estate property can be obtained by foreign citizen of Indian Origin. Purchase consideration is made either out of inward payment in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with banks in India. Foreign citizens of Indian origin are to submit Form IPI 7 to Central Office of Reserve Bank at Mumbai within a period of 3 months from the date of purchasing a property and final payment to be settled after purchase consideration.
6.) Can NRI India Properties be sold without the authorization of Reserve Bank?
Yes, Reserve Bank has granted permission to sell NRI properties, whereas the property is purchased by any other foreign citizen of Indian heritage. Funds towards purchase consideration should be paid to India or paid out of balance in NRE/FCNR accounts.
7.) Can sale proceedings of NRI India properties, if and when sold be paid out of India?
In respect of residential NRI property purchased in India, after 26 May 1993, Reserve Bank considers application for transferring funds of sale proceedings up to the deliberate amount paid in foreign exchange of gaining NRI property for two such NRI properties. In the case of balance amount of sale proceedings in respect of NRI Real estate Invest purchased earlier to 26 May 1993 payment should be credited to ordinary Non-resident rupee account of the owner of the property.
8) Are there any terms and conditions required to be fulfilled if repatriation of sale
proceeds from NRI properties in India is desired?
In India applications for repatriation of sale proceedings of property are considerably provided as the sale takes place after three years from the date of final purchase of property or from the date of final payment of consideration amount on the NRI property, whichever is later on.
9) What is the modus operandi for seeking such repatriation?
In India permission for remittance of sale proceedings of NRI Real estate declaration should be made on Form IPI 8 to the Central Office of Reserve Bank at Mumbai within 3 months of the sale of the property.
10.) Can NRIs purchase or dispose residential property by way of gift?
Yes, Reserve Bank has granted permission to NRIs to purchase or dispose NRI India Properties up to two houses by means of gift or offer it to a family member who may be an Indian citizen or a person of Indian heritage, whether an Indian resident in India or not, gift tax has to be paid.
11.) Can NRI property held in India, be transferred by way of gift to family
members/registered charitable trusts/organization in India?
Yes, permission has been granted by Reserve Bank to Foreign citizens of Indian Origin to transfer, registered property by means of gift, possession in India to family members and charitable trusts / organizations subject to the provision that of all other laws, as applicable are consent with.
12) Can NRIs purchase commercial properties in India?
Yes, as per permission grant by The Reserve Bank, properties other than agricultural land/farm house/cultivated area can be purchased by NRI of Indian origin. The purchase consideration met either out of inward payment in foreign exchange through normal banking channels or out of funds from the purchasers NRE/FNCR accounts continued with banks in India and statement submitted to Central Office of reserve Bank at Mumbai stating on Form IPI 7 within 3 months from the date of purchasing the property or final payment of purchase consideration.
13) Can NRI residents dispose Indian properties?
Yes, NRI residents of India origin can dispose properties held in India.
14) Can sale proceedings of NRI property be paid out of India?
Yes sale proceedings of NRI property can be paid out of India. From 26 May 1993 in value of properties purchased in India by NRIs will be permitted to make their payment consideration amount originally paid from abroad provided on NBR property is sold after a duration of three years from the date of final purchase or from the date of payment of final payment which ever is later. Applications for the purpose of sale proceedings are required to be propose to the Central Office of Reserve Bank within three months from the sale of property declared on Form IPI 8.
15) Can residential/commercial be given or rented if not required for
immediate use?
Yes, the Reserve Bank has granted general permission for renting out any immovable properties held in India. The income from rental property or sale proceedings of any investment is eligible for repatriation.
16.) Can NRI residents possess finance for getting hold of a house / flat for residential
purpose from financial institution providing home loans?
The Reserve Bank has granted some general authorization to certain financial institutions for the purpose of providing home loans for e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant home loans to NRI residents for possessing a residence/flat for residential purpose under assured terms and conditions.
Home Loans are sanctioned on basic standards and purpose of loan, margin money and the quantum loan will be at parity with those appropriate to resident Indians. Loan reimbursement should be made within the period or 15 years, out of inward payment through banking channels or out of funds held in the investors NRE/FCNR/NRO accounts.
17) Can Indian housing companies grant home loans to their NRI staff?
The Reserve Bank has permitted Indian housing companies in order to sanction home loans to NRI staff deputed abroad, whereas they should hold an Indian passport subject to certain terms and conditions.

18.) Can an trustworthy dealer sanction home loan to NRIs where he is a principal
borrower with his resident close relative as a co-signer / guarantor or where the
property is possessed in cooperation with NRI borrower with his resident close
relative?
Yes, but in such cases the payment of margin money and reimbursement of loan paid in installments ought to be paid by the NRI borrower.