NRIs and OCIs don’t need RBI’s approval for buying immovable properties in India

The acquisition and transfer of immovable property in India by Overseas Citizens of India (OCI) does not require prior approval from the Reserve Bank of India (RBI), according to a clarification provided by the RBI on December 29.

“NRIs/OCIs are currently governed by FEMA 1999 provisions and do not require prior RBI approval for the acquisition and transfer of immovable property in India, other than agricultural land/farm house/plantation property, as per the terms and conditions laid down in Chapter IX of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, dated October 17, 2019 (as amended from time to time), issued under Section 46 of FEMA 1999,” the central bank said in a statement.

As a result, OCI cardholders are allowed to buy immovable property in India, but not agricultural land, a farmhouse, or a plantation property. In this regard, they are on par with NRIs.

A Non-Resident Indian (NRI) is a citizen of India who lives outside of India, as defined by the Foreign Exchange Management Act, 1999 – Master Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian Origin.

The Foreign Exchange Management (Non-debt Instruments) Rules, 2019, apply to the acquisition of immovable property by foreign citizens.

The government released a circular in March this year outlining the benefits available to Overseas Citizens of India (OCI) cardholders in the nation.

According to the announcement, OCI cardholders require a special permit for a variety of activities, including missionary and journalistic activity, as well as visiting any location that falls within the Central Government’s Protected, Restricted, or Prohibited regions.

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