NRI Corner

If you're looking for the right place to grow your investment, you're on the right page. Welcome to Pathak Developers, India's leading project holder and one of the most sought-after property developers. Here, you'll find the perfect mix of residential and commercial properties tailored to your specific needs, whether it's location, type of development, or budget. We've created this special section on our website just for you, to answer every question you may have about property investment in India. Over the last couple of decades, several thousand Indians have made smart investment decisions and become proud members of the Pathak family. We bring families together not only locally but also globally. We know you have choices, and we sincerely thank you for choosing us. We look forward to serving you at our best in bringing global families together.

Sincerely,
Mr Jayaram Pathak
Chairman & Managing Director
Pathak Developers Pvt. Ltd.

RBI Guidelines on Investment in Immovable Property by NRIs & PIOs
Note: The following information is taken from the FAQs section of the Reserve Bank of India, last updated on 17th January 2012. We update this section periodically, but for the most current information, please visit rbi.org.

Who is a Person Resident Outside India?
Under the Foreign Exchange Management Act (FEMA), 1999, a "person resident outside India" refers to an individual who is not a resident of India.

Types of Bank Accounts for NRIs/PIOs
NRIs/PIOs can open and maintain the following accounts with an Authorised Dealer (bank authorized to handle foreign exchange). NRO savings accounts can also be held with Post Offices. Citizens/entities from Bangladesh or Pakistan need prior RBI approval.

A. Non-Resident Ordinary Rupee (NRO) Account
Forms: Savings, Current, Recurring, Fixed Deposit
Currency: Indian Rupees
Permissible Credits: Transfers from non-resident rupee accounts, Inward remittances from abroad, Currency tendered during visit, Income like rent, pension, dividends, Sale proceeds of assets acquired legally
Permissible Debits: Local payments and investments, Remittance of current income abroad (after tax), Up to USD 1 million per financial year, Joint holding with residents and/or NRIs allowed, Nomination facility available, Loans allowed against fixed deposits, Foreign nationals visiting India may open NRO accounts under specific conditions

B. Non-Resident External Rupee (NRE) Account
Forms: Savings, Current, Recurring, Fixed Deposit
Currency: Indian Rupees
Only NRIs can open (not via Power of Attorney), Joint holding with resident close relatives on 'former or survivor' basis, Fully repatriable, Interest and balances are tax-free, Overdraft allowed up to ₹50,000 for two weeks
Permissible Credits: Inward remittances, Transfers from NRE/FCNR accounts, FDI sale proceeds, interest/dividends
Permissible Debits: Local payments, investments, foreign remittance, Loans up to ₹100 lakh allowed against NRE balances, Limited operations via Power of Attorney (for local disbursements only)

C. Foreign Currency Non-Resident [FCNR (B)] Account
Only in term deposits (1–5 years), Currency: Freely convertible currencies, Interest: LIBOR/SWAP + 125 basis points (as of Nov 23, 2011), Same debit/credit permissions as NRE account, Loans up to ₹100 lakh permitted, Deposits may be continued after returning to India (till maturity), Joint accounts allowed with resident close relatives (operation restricted)

Special Account Conditions for Bangladesh/Pakistan Nationals:
Individuals/entities from Bangladesh or Pakistan must get prior RBI approval. Requests should be directed to the Chief General Manager-in-Charge, Foreign Exchange Department, RBI, Mumbai.

Who is a Non-Resident Indian (NRI)?
A Non-Resident Indian (NRI) is an individual who is an Indian citizen but has migrated to another country, either permanently or temporarily, for purposes such as employment, education, etc. Other commonly used terms for an NRI include Overseas Indian, Expatriate, or Indian Expatriate.

Who is a Person of Indian Origin (PIO)?
Any person who was born an Indian citizen but has since acquired the citizenship of another country is considered a Person of Indian Origin (PIO).

Are Non-Resident Indians (NRIs) & Foreign Citizens of Indian Origin (PIOs) allowed to acquire or dispose of immovable property in India?
Yes! The Reserve Bank of India has clearly granted permission to all NRIs and PIOs to acquire and dispose of immovable property in India, including residential and commercial properties. However, the RBI restricts the purchase of agricultural land, plantation property, or farmhouses in India.

What method should an NRI or PIO use to purchase a property in India?
An NRI or PIO can purchase a property either through an inward remittance in foreign exchange via normal banking channels or through funds available in NRE/NRO/FCNR accounts maintained in India.

Do you require the permission of the RBI to transfer immovable property in India?
No! NRIs and PIOs do not require the permission of the RBI to transfer immovable property to any Indian citizen, NRI, or PIO.

Can sale proceeds of immovable property be remitted out of India?
Yes! The sale proceeds of immovable property can be remitted out of India to the home country of the NRI or PIO, up to the maximum of the original consideration amount that was remitted from abroad to purchase the property. However, the property must be sold only after a period of three years from the date of the final purchase deed or the date of payment of the final installment, whichever is later.

Additional conditions:
The immovable property must have been acquired in accordance with the Exchange Control Rules/Regulations/Laws in force at the time of acquisition, or as per the provisions of the Foreign Exchange Management Act, 1999.
The amount to be repatriated must not exceed:
- The amount paid for the acquisition through foreign exchange received via normal banking channels, or from funds in FCNR accounts, or
- The foreign currency equivalent (as on the date of payment) of the amount paid from NRE accounts.
For residential property, repatriation of sale proceeds is restricted to a maximum of two properties.
Application for repatriation must be submitted to the Central Office of the Reserve Bank within 90 days of the sale of the property, using Form IPI 8.

Can an NRI give a Power of Attorney to someone in India to complete loan formalities?
Yes! NRIs can appoint a Power of Attorney (PoA) to complete all loan-related formalities for purchasing property in India. Given that NRIs may not be present in India for extended periods, appointing a PoA is often practical and recommended.

What are the conditions if the Power of Attorney is being executed outside India?
It is advised that the PoA holder should preferably be a resident of India. However, if the PoA is executed outside India, the following procedures must be followed:
- The PoA should be executed on a stamp paper or plain paper, as applicable in the country of execution.
- The signature of the executant must be attested by an official of the Indian Embassy, Indian Consulate, or Trade Commissioner in the country where the executant resides.
- The signature of the attorney should be verified in India by a Notary, employer, or banker on a separate piece of paper, which must be submitted along with the original PoA document.