According to the Foreign Exchange Management Act (FEMA), 1999, an NRI is a person resident outside India who is either a citizen of India or a person of Indian origin (PIO).
Under KYC norms NRI must submit passport copy and relevant pages of passport having name, photo, date of birth and address and copy of PAN should be submitted. Overseas address is mandatory. Either the permanent or correspondence address must be an overseas address.
NRI can open, hold and maintain different types of accounts with an Authorized Dealer (bank authorized to deal in foreign exchange) in India without the permission from the Reserve Bank.
NRIs can maintain NRO account for transactions in rupees without any approval from Reserve Bank of India. Payments for investments in real estate must be made only through the NRO/NRE Accounts and cannot be made through travellers’ cheque or foreign currency notes.
Modes of Acquisition
NRI may acquire any immovable property in India other than agricultural land /farm house plantation property, by way of purchase and/or gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India.
Documents of Title
Such documents under which the NRI will derive his title to the property including the earlier title deeds, revenue records, land records, no dues certificate and title certificate from a lawyer. Additionally the NRI may seek advise of a Chartered Accountant and a lawyer so as to rule out any legal glitch.
NRI may also avail a housing loan in Rupees from an Authorised Dealer (Bank/ Financial Institution)