NRI CORNER

A. A person residing outside India who is a citizen of India or a person outside India who is of Indian origin is an NRI. The definition of Person resident outside India is defined under section 2(w) of Foreign Exchange Management Act, 1999 as “a person who is not resident in India”

A person shall be deemed to be a person not resident in India in the following cases:-

• When the person stays in India for less than or up to 182 days during the preceding financial year


• When a person who has gone out of India or who stays outside India, in either case -


1. For or on taking up employment outside India, or


2. For carrying on outside India a business or vocation outside India, or


3. For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period

A. The definition of ‘Person of Indian Origin’ is defined under section 2 (b) of Foreign Exchange Management (borrowing and lending in rupees) Regulations, 2000 and under section 2 (xii) of Foreign Exchange Management (Deposit) Regulations, 2000 as given under:-

“Person of Indian Origin’ means a citizen of any country other than Bangladesh or Pakistan, if

• He at any time held an Indian passport; or


• He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or


• The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b)”

Person of Indian Origin (PIO) for the purpose of acquiring immovable property in India as given under:- “Person of Indian origin’ means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

• At any time, held an Indian passport; or


• Who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)”

A. Under the general permission available, the following categories can freely purchase immovable property in India:

• Non-Resident Indian (NRI) – that is a citizen of India resident outside India


• Person of Indian Origin (PIO) – that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who


1. At any time, held Indian passport, or


2. Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercial property.

A. Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

A.The Reserve Bank has granted some general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant housing loans to NRI nationals for acquisition of a NRI house/flat for self-occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO accounts.

• A Power Of Attorney (POA) or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter, sometimes against the wishes of the other. The person authorizing the other to act is the principal, grantor, or donor (of the power).


• A Power Of Attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property.


• A Power Of Attorney, or letter of attorney, is a document that authorizes another person, known as the agent or attorney-in-fact—usually a legally competent relative or close friend over 18 years old—to handle any combination of financial, legal and health care decisions. A power of attorney is also referred to as a POA. Generally, one chooses a POA as a provision if he or she becomes incapacitated.

Types of Power of Attorney

• Power Of Attorney (POA) is an instrument that is used by people to confer authority on somebody else to legally act on their behalf. POA are of two types.


• Special Power of Attorney (SPA), while an SPA is used for transfer of a specific right to the person on whom it is conferred.


• General Power of Attorney (GPA), the GPA authorizes the holder to do whatever is necessary.


• There is no sale clause of immovable property mentioned in POA (notarized)


• Registered POA from registration office allows sale clause and POA to any one

Following are the important things to be kept in mind while executing the POA:

• Customer Prepares POA as per defined format.


• Person to execute has to paste his/her photograph along with signature on each page.


• Authenticate/adjudicate the POA from Indian Embassy or local authority.


• Send authenticated/adjudicated POA in India.


• In India, the POA holder has to paste his/her photograph along with his/her left hand thumb impression and signature.


• Then this document will have to be stamped for Rs. 500/- (ESBTR, Franking, Stamp paper) and notarized from a Registered Notary. Please ensure that a stamp of “Before Me” is affixed on the document.


• POA holder and executants Photo ID attach before Notary

A. The documentation required to be submitted by the NRIs are different from the Resident Indians as they are required to submit additional documents, like copy of the passport and a copy of the works contract, etc. and of course NRIs have to follow certain eligibility criteria in order to get Home Loans in India. Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the Home Finance Company would need a ‘representative’ ‘in lieu of’ the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI’s parents/wife/children/ close relatives or friends.

The documents needed for obtaining NRI home loans are Bank specific. General list of documents are as mentioned below:

• Passport and Visa


• A copy of the appointment letter and contract from the company employing the applicant.


• The labour card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East Salary certificate (in English) specifying name, date of joining, designation and salary details.


• Bank Statements for the last six months