Who is a Non Resident Indian?

A person is considered as a Non Resident Indian (NRI) if he/she being an Indian Citizen stays outside India for employment or for any other reason for an uncertain duration of time.As per India's Foreign Exchange Management Act 1999 (FEMA), a Non Resident Indian is an Indian citizen or Foreign National of Indian Origin resident outside India for purposes of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. An individual will also be considered as a Non Resident Indian if his/her stay in India is less than 182 days during the preceding financial year.

Who is a Person of Indian Origin (PIO)?

As per Government norms, a person who is not a citizen of India is deemed to be of Indian origin if he is not a citizen of Pakistan or Bangladesh and 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 Citizenship Act, 1955.

A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a PIO is also treated as a PIO for the purpose of NRI deposits if the accounts are held jointly with the NRI/PIO spouse. PIOs are extended the same facilities for bank account maintenance in India as Non Resident Indians and are also, for such purposes, called by the generic name as Non Resident Indians.

Facilities granted to Non Resident Indians

1. Non Resident Indians can open bank accounts in India.
2. Investments in securities/shares/deposits with Indian firms/companies.
3. Investments in residential/immovable properties in India.

Acquisition of property

A Non Resident Indian can acquire property in India by 3 ways:-

1. Purchase

   Under the general permission available, both Non Resident Indians and PIOs who at any time held Indian passport or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India can freely purchase immovable properties in India.

2. Gift

   Non resident Indians and PIOs can freely acquire immovable property by way of gift either from a person resident in India or a Non Resident Indian or a PIO. The property can only be commercial or residential.

3. Inheritance

   A Non resident Indian can inherit immovable property from a person resident in India and a person resident outside India. However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that point of time.

Transfer of property

As per Government norms, a Non Resident Indian can transfer his/her property in India in 3 ways.

1. Transfer by Sale

   A Non Resident Indian can sell his property to a person resident in India, to a Non Resident Indian or to a Person of Indian Origin (PIO).

2. Transfer by gift

   A Non resident Indian can gift his/her residential or commercial property to a person resident in India, to a Non Resident Indian, or to a PIO, or can also to a foreign national of non-Indian origin but it needs prior approval of Reserve bank.

3. Transfer through mortgage

   A residential or a commercial property owned by a Non Resident Indian can be mortgaged to an authorized dealer or to a housing finance institution in India without the approval of RBI or to a party abroad with prior approval of RBI.

NRI Investment

Kochi is one of the fastest growing cities within India and the recent developments have resulted in high demand for residential and commercial properties. With the developmental projects like India's first International Container Transshipment Terminal at Vallarpadam Kochi, proposed Metro rail project by the State Government of Kerala, Kochi SmartCity a planned IT Township by the joint venture of Government of Kerala, TECOM investments and Sama Dubai and with the first airport in India constructed with private participation Cochin International Airport, there is an increased demand in realty Kochi.

Real estate scenario in Kochi will maintain its growth pace as more and more projects comes to the city which ensure huge infrastructure investments in Kochi. Returns from the real estate industry has outperformed other investment options and thus there is a high investment rate in real estate industry. NRI investment in Kochi has increased the demand for residential properties in the city. Kochi is rated as the most suitable place for Non Resident Indians who plan to have a house in Kerala due to its urban lifestyle.