RBI in future will allow NRIs to buy property jointly with spouses of other nationalities
Non-resident Indians planning to buy property in India jointly with their spouses holding foreign passports could soon be allowed to do so. The Reserve Bank of India (RBI) is planning to relax the restrictions under the Foreign Exchange Management Act (FEMA), which make such acquisitions difficult.
Currently if an NRI wants to buy a house or any other real estate as a joint property with a foreign citizen spouse, it is dealt as a special one needing a prior permission from the RBI. This is done on a case to case basis. The RBI executive director, G Padmanabhan has said that he has asked for a review of these rules.
This is an issue that requires examination in consultation with the Government of India. He also mentioned that he has directed a comprehensive review of FEMA 21(notification) under which such transactions are dealt with.
Padmanabhan also mentioned that there has been a spurt in such applications but because each needs a specific permission from RBI, the process takes time.
The regulation is Notification No. FEMA 21/2000 that specifies the rules which permit an NRI or a Person of Indian Origin (PIO) to acquire immovable property in India, other than agricultural land or, plantation property or farm house.
Source- The Indian Express
FEMA 21, Foreign Exchange Management Act, G Padmanabhan, Person of Indian Origin, Reserve Bank of India
