What is the procedure for seeking such repatriation?
Ans. No procedural formalities are required. The authorized dealer shall simply ensure that the stipulated conditions are fulfilled. If the conditions are not fulfilled, then Reserve Bank’s permission is to be obtained. Q. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorized dealers or financial institutions providing housing finance? Ans. Reserve bank has granted general permission to authorized dealers and financial institutions providing housing finance which are approved by National Housing Bank to grant housing loans to non resident Indian national for acquisition of a house/flat for self occupation subject to certain conditions. Repayment of the loan should be made by inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO/NRNR/NRSR accounts. Rental income derived from renting out such acquired property by utilizing loan amount can also be used for repayment.
• Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property. • Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift? • Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not,provided gift tax has been paid. • Can foreign citizens of Indian origin acquire commercial properties in India? • Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of fund
