Who is a Non-Resident Indian (NRI)?
A person who resides outside India who is a citizen of India or is a Person of Indian Origin, for the purposes of certain Foreign Exchange Management Regulations. NRI also means a person who resides outside India who is a citizen of India.

Who is a Person of Indian Origin (PIO)?
For the purpose of acquisition and transfer of immovable property in India, a PIO means an individual (not being a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who (i) at any time, held Indian passport, or (ii) who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

Do NRIs and PIOs require permission of Reserve Bank to acquire residential/commercial property in India?
NRIs and POIs do not require permission from RBI to acquire residential / commercial premises in India (other than agricultural land/farm house/plantation property).

Can a name of a foreign national of Non-Indian Origin be added as a second holder to a residential / commercial property purchased by NRI / PIO?
No.

Can a person resident outside India (i.e,. a NRI or a PIO or a foreign national of Non-Indian Origin) acquire agricultural land / plantation property / farm house in India by way of purchase?
No. A person resident outside India cannot acquire by way of purchase agricultural land / plantation property / farm house in India.

Can a person resident outside India (i.e. a NRI or a PIO , or a foreign national of Non-Indian Origin) acquire agricultural land / plantation property / farm house in India by way of gift?
No. A person resident outside India cannot acquire agricultural land / plantation property / farm house in India by way of gift.

Can a foreign national of Non-Indian Origin resident outside India acquire any immovable property in India by way of purchase?
No. Under section 2(ze) of the Foreign Exchange Management Act, 1999 'transfer' includes among others, 'purchase'. Therefore, a foreign national of Non-Indian Origin resident outside India cannot acquire any immovable property in India by way of purchase.

Can a foreign national of Non-Indian Origin acquire residential property on a lease in India ?
Yes. A Foreign National of Non-Indian Origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan may acquire only residential accommodation on lease, not exceeding five years for which he / she does not require prior permission of Reserve Bank of India.

Under general permission available can NRI / PIO transfer his residential / commercial property way of gift ?
Yes. NRI / PIO may transfer by way of gift residential / commercial property in India to a person resident in India or to a NRI or a PIO.

Can NRI / PIO transfer by way of mortgage his residential / commercial property to an authorised dealer / housing finance institution in India ?
Yes.

Can NRI / PIO transfer by way of mortgage his residential / commercial property in India to a party abroad ?

No. He should seek prior approval of RBI.

Can a foreign national of Non-Indian Origin resident in India or outside India transfer by way of mortgage his residential / commercial property in India acquired with the specific approval of Reserve Bank to a party in India or abroad ?
No. He should seek prior approval of RBI. However, immovable property purchased by a person resident outside India who has established a Branch Office or other place of business for carrying on in India any activity in accordance with FERA / FEMA regulations, may under general permission available, mortgage such a property with an authorised dealer as a security for any borrowing.

Can the sales proceeds of residential / commercial premises be remitted out of India?
The repatriation of sale proceeds of immovable property other than agricultural land / farmhouse / plantation property may be remitted out of India on fulfilling the following conditions.

Can NRIs obtain loans for acquisition of house/flat for residential purpose from authorised dealers/financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing housing finance and authorised dealers to grant housing loans to Non-Resident Indian nationals for acquisition of a house/flat for
self-occupation subject to certain conditions. The purpose of of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittance or out of funds held in the investor's NRE/FCNR/NRO accounts.

Can NRI / PIO acquire residential / commercial property by way of gift under the general permission available?
Yes. Under the general permission available NRI / PIO may acquire residential / commercial property by way of gift from a person resident in India or a NRI or a PIO.

Can NRIs and PIOs gift residential / commercial premises to relatives / registered charitable trusts / organisations in India?
Yes. General permission has been granted by Reserve Bank to Non-Resident Persons (foreign citizens) of Indian Origin to transfer by way of gift immovable property held by them in India to relatives and charitable trusts/organisations subject to the condition that the provisions of any other laws, including Foreign Contribution (Regulation) Act, 1976 and stamp duty laws, as applicable, are duly complied with.

Can NRIs and PIOs give residential / commercial premises on rent if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation subject to payment of taxes and production of a certificate issued by a chartered accountant with the guidance of an Authorised Dealer such as a bank for completion of formalities.

How should NRIs and PIOs make payment of the consideration for residential / commercial property?
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR/NRO accounts maintained with banks in India.