• How to get RBI approval for property transactions by foreign nationals

I am seeking information regarding the process outlined below, which applies to individual transactions and not for any business or corporate purposes.

As per the information provided in the RBI notification (Question 7) [link: https://www.rbi.org.in/commonman/english/scripts/Notification.aspx?Id=845#A1]:

7. Prior permission to the citizens of certain countries for acquisition or transfer of immovable property in India
A citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan, whether resident in India or outside India, cannot acquire or transfer immovable property in India without prior permission from the Reserve Bank of India. This restriction does not apply where the immovable property is taken on lease for a period not exceeding five years.

Could someone please clarify how to apply for this permission from the RBI?

I have been attempting to get in touch with RBI through calls, but my inquiries are repeatedly routed to different extensions without any resolution. Additionally, I have sent several emails but have not received any responses.

Any guidance or assistance on this matter would be greatly appreciated.
Asked 26 days ago in Property Law
Religion: Hindu

8 answers received in 1 day.

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9 Answers

A personal visit you your agent may give results.

The process is there which is little lengthy and tedious. 

I understand you are citizen of the aforesaid countries. It is not clear whether you are person of Indian origin or not or whether you hold OCI or PIO card.

Devajyoti Barman
Advocate, Kolkata
23354 Answers
524 Consultations

Make an application to 

 

Chief General Manager, Foreign Exchange Department, (Foreign Investment Division), Reserve Bank of India , Central Office , Mumbai – 400001

Ajay Sethi
Advocate, Mumbai
97624 Answers
7902 Consultations

You need to apply the same in writing with the RBI office seeking the said permission under circular. After payment of requisite fees and other factors same will be allowed on merits. If the same is not answered kindly fine RTI before RBI seeking explanation 

Prashant Nayak
Advocate, Mumbai
32947 Answers
209 Consultations

The Reserve Bank of India (RBI) has guidelines for NRIs who want to buy property in India. These guidelines include documentation requirements, property types that can be purchased, and tax implications.

NRIs must submit a declaration to the RBI within 90 days of acquiring the property.

NRIs must pay for the property in Indian rupees through normal banking channels or NRI bank accounts.

NRIs must comply with the FEMA and regulations issued by the RBI .

Citizens of certain countries need prior permission from the RBI to buy property in India .

An NRI / PIO who has purchased residential/commercial property under general permission, is not required to file any documents with the Reserve Bank.

T Kalaiselvan
Advocate, Vellore
87818 Answers
2365 Consultations

To get RBI approval for property transactions as a citizen of restricted countries:


  1. Prepare Application: Address it to the RBI Regional Office of the property’s location with details of the property and transaction.

  2. Attach Documents: Include passport, visa, citizenship proof, transaction agreement, and funding source details.

  3. Submit via Bank: File the application through your Authorized Dealer (AD) bank.

  4. Follow Up: Track progress with your AD bank or RBI Regional Office.

If no response, use RBI’s grievance portal at https://cms.rbi.org.in.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
597 Answers
3 Consultations

To apply for prior permission from the Reserve Bank of India (RBI) for acquiring or transferring immovable property in India as a citizen of the restricted countries (Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan), you need to follow these steps:

  1. Draft a Formal Application: Prepare a written application addressed to the relevant RBI department (generally the Foreign Exchange Department). The application must detail the purpose of the transaction, the property specifics, the parties involved, and the reason for acquiring/transferring the property.

  2. Attach Necessary Documents:

    • A copy of your passport (to establish citizenship and identity).
    • Proof of residence (if applicable).
    • Documents pertaining to the property, such as sale agreement or lease deed.
    • Supporting documents, like your visa or residency proof in India, if applicable.

  3. Submit to the RBI's Regional Office: Applications are typically submitted to the RBI's regional office under whose jurisdiction the property is situated. You can find a list of regional offices and their addresses on the RBI's official website.

  4. Follow RBI's Prescribed Form: In some cases, RBI may require you to submit your application in a specific format. It is advisable to check with the local regional office or review the Foreign Exchange Management Act (FEMA) guidelines for specific requirements.

  5. Consult Authorised Dealer (AD) Banks: Sometimes, applications are routed through AD banks (banks authorised by the RBI to deal in foreign exchange). Reach out to the AD bank where you hold an account for assistance in submitting your application.

  6. Regular Follow-ups: After submission, maintain regular communication with the RBI office handling your case. Ensure you have an acknowledgement of your application for reference.

  7. Professional Assistance: If you face difficulties navigating the process, you may consider consulting a legal expert specialising in FEMA or property law to assist with drafting and submitting the application.

If emails and calls to the RBI have gone unanswered, you can escalate the matter by visiting the regional office directly or contacting their Public Grievance Redressal System for further assistance.

Thanks and Regards,
Advocate Aman Verma, Legal Corridor.

Aman Verma
Advocate, Delhi
279 Answers

Dear Client,

 

Prior permission is required from RBIfor acquiring or transferring immovable property in India, as a foreign national from specified countries such as Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan. Anapplication to the Foreign ExchangeDepartment of RBI is thus required. The application has to contain the detailed information about the property, purpose of the transaction, and personal details. The supporting documents for the application will include identity proof, residency details, and property documents. TheAuthorized Dealer (AD) bank canfacilitate the application between the applicant and RBI. Since your attempts to contact the RBI directly have been unsuccessful, approaching your AD bank for guidance and submitting the application through them is the most efficient way to proceed. Ensure all documentation is accurate and complete to avoid delays in processing.

Anik Miu
Advocate, Bangalore
10427 Answers
121 Consultations

answer to your question requires deeper research. 

Ravi Shinde
Advocate, Hyderabad
4492 Answers
42 Consultations

 

- You can submit an application before the RBI with the property details which you want to purchase.

- This application should be accompanied by the proofs of your foreign nationality and visa copy 

- You can take assistance of any lawyer for the same. 

 

Mohammed Shahzad
Advocate, Delhi
14778 Answers
225 Consultations

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