Non-resident Indians (NRIs) and overseas citizens of India (OCIs) don't require prior approval for buying or selling immovable properties like houses in the country, Reserve Bank of India (RBI) clarified on Wednesday.
"At present, NRIs and OCIs are governed by provisions of Foreign Exchange Management Act (FEMA) 1999 and do not require prior approval of RBI for acquisition and transfer of immovable property in India, other than agricultural land, farm house, plantation property," RBI said in a statement.
The central bank issued the clarification as it has received a large number of queries based on media reports on a Supreme Court Judgement, on whether prior approval of RBI is required for acquisition or transfer of immovable property in India by OCIs.
"It is hereby clarified that the concerned Supreme Court Judgement dated February 26, 2021 was related to provisions of FERA, 1973, which has been repealed under Section 49 of FEMA, 1999," the RBI made it clear.
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