(Subject to the circulars of the RBI)

• Who is an NRI (for the purpose of FEMA)?
  Section 2(V) & 2(W) of FEMA 1999 defines “person resident in India & person resident outside India”.
  
  According to Section 2(V) of FEMA, 1999 “person resident in India” means:
   
  1. A person residing in India for more than one hundred and eighty- two days during the course of the preceding financial year but does not include:
     • A person who has gone out of India or who stays outside India, in either case:
       • for or on taking up employment outside India, or
          
       • for carrying on outside India a business or vocation outside India, or
          
       • for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;
     • A person who has come to or stays in India, in either case, otherwise than:
       • for or on taking up employment in India, or
       • for carrying on in India a business or vocation in India, or
          
       • for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;
  2. Any person or body corporate registered or incorporated in India,
      
  3. An office, branch or agency in India owned or controlled by a person resident outside India,
      
  4. An office, branch or agency outside India owned or controlled by a person resident in India
  According to Section 2(W) of FEMA, 1999 “person resident outside India” means a person who is not resident in India.
  
   
• What kind of Bank Accounts can be operated by NRIs?
  1. Non - Resident (External) Account (NRE):
     Current, Savings and Fixed Term accounts can be opened by depositing foreign currency along with the account application form. NRE account can be opened during the visit to India by tendering foreign currency travellers cheques or foreign currency notes.
      
  2. Foreign Currency Non-Resident (Banking) Account [(FCNR)(B)]:
     In the form of fixed deposits for a maximum period of 3 years, only by NRIs and OCBs resident in external group of countries. NRIs and OCBs resident in bilateral group of countries cannot open FCNR accounts. FCNR accounts are permitted only in four currencies viz, GBP, USD, DM and JPY.
  
   
• Can Non Resident Indians (NRIs) avail loans for purchase of immovable property?
  Yes, provided:
  1. The loan amount shall not exceed 85% of the cost of the dwelling unit.
      
  2. Own contribution (which is the price of dwelling unit financed less the loan amount) is met from direct remittances from abroad only through normal banking channels, or from the Non- Resident (External) [NR(E)] Account and / or Non-Resident Special Rupees Account [NRSR] in India.
  
   
• What are the common documents to be submitted along with the loan application?
  Normally, following documents are required along with the loan application form:
   
  1. Photocopy of the labour contract duly countersigned by the employer (translated in English for Non-English documents).
      
  2. Latest salary certificate (in English) specifying the following :
     • Name (as it appears in the passport)
        
     • Date of Joining
        
     • Passport number
        
     • Designation
        
     • Perquisites and salary
  3. Photocopy of labour card / identity card.
      
  4. Photocopy of valid resident visa stamped on the passport.
      
  5. Photocopy of monthly statement of local bank account.
      
  6. Property related documents.
  
   
• What security will Non Resident Indians (NRIs) have to provide for availing loan?
  First mortgage of the property to be financed, by way of deposit of title deeds and / or such other collateral security as may be necessary. A local Guarantor shall be required. An additional interim security may be required, if the property is under construction. Collateral or interim security could be in the form of assignment of life insurance policies, surrender value of which is at least equal to the loan amount, pledge of shares and other such investments.
  
   
• Can Non Resident Indians (NRIs) give a Power of Attorney in favour of a person of his choice in India to complete loan formalities on his behalf?
  Yes.
  
   
• Can the house owned by Non Resident Indians (NRIs) be let out?
  Yes.