The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.
Also, they can pay through the funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by the Reserve Bank of India (RBI) from time to time, the apex bank said.Notably, the NRIs and PIO can acquire immovable property in India other than agricultural property, plantation or a farmhouse.
Accordingly, such payment cannot be made either by traveller's cheque or by foreign currency notes or by other mode other than those specifically mentioned, RBI stated.
The apex bank has asked the Category I banks to bring the contents of the circular to the notice of their constituents and customers concerned.
Source The Tribune
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