Any person of Indian origin (Indian Citizen) living abroad for purpose of education, employment, carrying on business etc. for a long duration abroad is a non-resident Indian. Non-residents foreign citizens of Indian Origin are also treated on par with non-resident Indian Citizens (NRI's) for purpose of certain facilities.
Non Resident Indians are allowed to make real estate investments in India without any cap on quantity or the number of investments.
There is no restriction or condition on payment on buying a property. The normal banking channels are applicable.
- FCNR (Foreign Currency Non-Resident accounts) in India
- Remittance from abroad through normal banking channels.
- NRO accounts in India. (Deposits in dollars opened by residents or non-residents)
- NRE (Non Resident External Rupee accounts)
FEMA stipulates that before making a purchase, special form called the IPI 7 needs to be filed with the central office of the RBI along with the title deed or any other certified copy of the document proving that the NRI has executed an agreement to purchase the property within the country within 90 days of the purchase of property along with bank certificate stating consideration paid for the purchase.
Reserve Bank has granted general permission to foreign citizens of Indian Origin, whether resident in India or Abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain separate permission of Reserve Bank
The Reserve Bank has granted general permission to certain financial institutions, like HDFC, LIC Housing Finance Ltd., to grant housing loans to non-resident Indian nationals for acquisition of houses/flats subject to certain conditions.