NRI Investors
NRI Investors
Guidelines by the Reserve Bank of India (RBI) Regarding Investment in Immovable Property for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
DISCLAIMER: The information provided below is sourced from the Frequently Asked Questions (FAQs) section of the RBI, last updated on April 1, 2016. While we endeavour to maintain the accuracy of this information, we encourage you to also visit www.rbi.org for the most current updates.
According to the Foreign Exchange Management Act (FEMA), 1999, an individual resident outside India is defined as someone who does not reside within the territorial jurisdiction of India.
What are the different types of accounts which can be maintained by an NRI 1/PIO2 in India?
If a person is an NRI or PIO, she/he can, without the permission from the RBI, open, hold and maintain the different types of accounts given below with an Authorised Dealer in India, i.e. a bank authorised to deal in foreign exchange.NRO Savings Accounts can also be maintained with the Post Offices in India. However, individuals/ entities of Bangladesh and Pakistan require prior approval of the Reserve Bank.
Types of accounts which can be maintained by an NRI/PIO in India are as under:
Opening of accounts by individuals/entities of Pakistan nationality/ownership and entities of Bangladesh ownership requires prior approval of the Reserve Bank.
However, individuals of Bangladesh nationality can open an NRO account subject to the individual(s) holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office (FRRO) concerned.
Any person resident outside India, having a business interest in India, can open a Special Non-Resident Rupee Account (SNRR account) with an authorised dealer for the purpose of putting through bona fide transactions in rupees which are in conformity with the provisions of the Act, rules and regulations made thereunder. The features of the SNRR account are:
The SNRR can be held only as a non-interest earning account, while an NRO account can earn interest. While the balances in a NRO account are non-repatriable (except for current income and to the extent permissible for NRIs/PIOs under FEMA 13(R)), SNRR is a repatriable account.