Non-resident Indians allowed FCNR (B) account in any convertible currency
NRIs can also hold property abroad

RBI has allowed Non-resident Indians to hold their foreign currency accounts in any currency that is fully convertible. Authorised Dealer banks in India can now accept FCNR (B) deposits in any permitted currency.

This move will help NRIs by giving them more options in the holding of accounts, and lessen the risk from fluctuations in major currencies. Earlier, Foreign Currency (Non-Resident) Account (Banks) (FCNR(B) account holders were allowed to hold accounts in only certain currencies such as the Pound Sterling, US dollar, Japanese yen, euro, Canadian dollar and Australian dollar.

RBI has also said that any citizen who was earlier residing in a foreign country can own or transfer property or other assets in that nation if it was acquired during the time of his residence there. RBI’s statement says, “A person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.”

RBI relaxes forex facilities for NRIs and PIOs

 

Reserve Bank of India has relaxed some foreign exchange facilities for NRIs and persons of Indian origin. RBI has further liberalised foreign exchange facilities for individuals under the Foreign Exchange Management Act (FEMA).

NRIs can now be joint account holders in resident SB, EEFC, and RFC accounts. Indian residents can include non-resident close relatives as joint holders in their resident bank accounts. However,  non-resident relatives will not be eligible to operate the account during the lifetime of the resident account holder.

NRIs and PIOs are allowed non-resident external ( NRE) rupee account schemes and foreign currency non-resident (FCNR) accounts with their resident close relatives as joint account holders on a 'former or survivor' basis now. The resident relative should be eligible to operate the account as a power of attorney holder during the lifetime of the NRI or PIO account holder.

Resident Indians can now gift shares and debentures up to $50,000 in a financial year. Resident individuals are now permitted to make rupee gifts within the overall limit of $ 2,00,000 in a financial year to a NRI or PIO who is a close relative.

Resident Indians can now lend in rupees within the overall limit under the liberalised remittance scheme of $2,00,000 in a financial year to a NRI or PIO who is a close relative. The loan should be free of interest. The minimum maturity of the loan should be one year.

Residents can also bear the medical expenses of NRI close relatives.

Vishwa Kannada Sammelana

The Vishwa Kannada Sammelana, world Kannada conference, is finally scheduled for March 11-13 at Belgaum. It is expected that a large number of prominent Kannadigas from home and abroad will grace the occasion.

The Kannada film industry will stage a special show. The industry is taking a 5-day break to participate in the Sammelana. There are going to be cultural shows and discussions relating to different aspects ranging from Kannada NRIs' problems, political issues, political history of the state and economic development.

The state government is stated to be active in at least 39 countries to woo NRIs and PIOs of Kannada lineage for the event; however, the response is reported to be tepid.

Biharis to celebrate Bihar diwas every 22nd March; to have Bihar NRIs meet next Feb

The Bihar Foundation is planning to organize a two-day meet of the NRIs of Bihar origin in February 2012. The meet, likely to begin on Feb 18, will also be open to Biharis living in other states of India.

After the present government took over in Bihar, the state has seen all-round growth. There is improvement in infrastructure, law and order situation is better, and Biharis are showing new sense of pride and belonging. 

This March, Bihar Diwas is being celebrated on the 22th in a large number of places abroad. The Bihar Foundation is coordinating the activities.

How do Indian governments connect with NRIs?

We posted this post on the India Travel Advice site, telling you how perfunctorily State Governments in India treat NRIs.

By the way, we came across a booklet made by Goa government in association with the Central ministry for giving details of facilities and formalities. Not bad, and though it is aimed at non-resident Goans, most provisions apply to all NRIs.

NRI, PIO and OCI compared

 The following is a comparative statement about NRIs, PIOs and OCI card holders:

	NRI	PIO	PIO Card Holder	OCI
1.Who ?	An Indian citizen who is ordinarily residing outside India and holds an Indian Passport	A  person who or whose  any of ancestors was an Indian national and who is presently holding another country’s citizenship/ nationality i.e. he/she is holding foreign passport	A person registered as PIO Card Holder under MHA’s scheme  vide Notification No. 26011/4/98-F.I dated 19.08.2002.	A person registered as Overseas Citizen of India (OCI) under section 7A of the Citizenship Act, 1955
2. Who is eligible?			Any person who at any time held an Indian Passport; or he or either of his parents or grand parents was born in or was permanently resident in India as defined in Government of India Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of Afghanistan, Bhutan, China, Nepal, Pakistan and Sri Lanka; or who is a spouse of a citizen of India or a person of Indian origin as mentioned above.	A foreign national, who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at anytime after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his/her children and grand children, provided his/her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI.  However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI.
3.How can one get ?			Eligible persons to apply in the prescribed form alongwith enclosures. Form available on MHA’s website: www.mha.nic.in.	Eligible persons to apply on line/down load application form from MHA’s  website: www.mha.nic.in.
4. Where to apply?			To the Indian Mission/Post in the country where the applicant is ordinarily resident;  If in India on long term visa(more than one year),  to the FRRO, Delhi, Mumbai, Kolkatta, Amritsar, CHIO, Chennai or to the Joint Secretary(Foreigners), MHA.	To the Indian Mission/Post of the country of applicant’s citizenship or where he/she is not in the country of citizenship, to the Indian Mission/Post of the country in which he/she is ordinarily resident.  If the applicant is in India, he/she can apply to the FRRO at Delhi, Mumbai, Kolkota, Amritsar, CHIO, Chennai or to the Under Secretary, OCI Cell, Citizenship Section, Foreigners Division, Ministry of Home Affairs,  Jaisalmer House, 26 Mansingh Road, New Delhi- 110011.
5. Fees?			Rs. 15,000/- or equivalent in local currency for adults.   For the children upto the age of 18 years, the fee  is Rs. 7500/- or equivalent in local currency.	US $ 275 or equivalent in local currency.  In case of PIO card holders, it is US $ 25 or equivalent in local currency.
6.Which nationals are eligible?			PIOs of all countries except Afghanistan, Bangladesh, Bhutan, China, Nepal, Pakistan and Sri Lanka	PIOs of all countries except Pakistan and Bangladesh provided the country of nationality allows dual citizenship in some form or other under the local laws.
7.What  benefits one is  entitled to?	All benefits as available to Indian citizen subject to notifications issued by the Government from time to time	No specific benefits.	(i)Shall not require a separate visa to visit India. (ii) Will be exempt from the requirements of registration if his/her stay on any single visit in India does not exceed 180 days. (iii) In the event of continuous stay in India exceeding 180 days, he/she shall have to get himself/herself registered within 30 days of the expiry of 180 days with the concerned FRRO/FRO. (iv) Parity with NRIs in respect of all facilities available to the later in the economic, financial and educational fields except in maters relating to the acquisition of agricultural/ plantation properties.  No parity shall be allowed in the sphere of political rights.	(i) A multiple entry multi-purpose life long visa for visiting India. (ii)Exemption from registration with local police authority for any length of stay in India. (iii) Parity with Non resident Indians (NRIs) in respect of economic, financial and educational fields except in relation to acquisition of agricultural or plantation properties. No parity shall be allowed in the sphere of political rights.  Any other benefits to OCIs will be notified by the Ministry of Overseas Indian Affairs (MOIA) under Section 7B(1) of the Citizenship Act, 1955.
8.Does he/she require visa for visiting India?	No	Yes and of specific type depending on his/her purpose of visit.	Can visit India without visa for 15 years from the date of issue of PIO card.	Can visit India without visa for life long.
9.Is he required  to register  with local police authori- ties in India?	No	Yes.	Yes, one time when the stay in India exceeds 180 days for the first time.	No
10.What activities can be under- taken in India?	All activities	Activity as specified in  the visa	All activities except mountaineering, missionary and research work and existing PAP/RAP  which require specific permit.	All activities except mountaineering, missionary and research work and existing  PAP/RAP  which require specific permit.
11.How can one acquire Indian citizen- ship	He/she is an Indian citizen	As per  section 5(1) (a) & 5(1) (c) of  the Citizenship Act, he/she has to reside in India for minimum 7 years before making application for granting Indian citizenship	As per  section 5(1) (a) & 5(1) (c) of  the Citizenship Act, he/she has to reside in India for minimum 7 years before making application for granting Indian citizenship	Registered OCI may be granted Indian citizenship after 5 years from date of registration provided he/she stays for one year in India before making application

Adopted from GOI documents as in January 2011.

Basic definitions

Non-resident Indian (NRI) 


An Indian citizen who stays abroad for employment or for carrying on a business or on a vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.
For various purposes, such non-resident persons of Indian origin are treated on par with NRIs even if they have acquired foreign citizenship.
Persons posted in UN bodies and officials deputed abroad by Central/State Governments and Public Sector Undertakings on temporary assignments are also treated as non-resident.

Person of Indian Origin (PIO)


A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if
he/ she, at any time, held an Indian passport or
he/she or either of their parents or any of their grand parents was citizen of India by virtue of the Constitution of India or Citizenship Act, 1955
is a person of  Indian origin or PIO for having a bank account or investing in shares/ securities in India.
The spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the purpose of banking/ investment if they open a joint account with the citizen or PIO.
For investments in immovable properties, a foreigner (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka, or Nepal), is deemed to be of Indian origin if
he/she held an Indian passport at any time or
he/she or their father or paternal grand-father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

Overseas Corporate Bodies (OCB)

Overseas Corporate Bodies are companies etc outside India that are predominantly owned by individuals of Indian origin or nationality who are resident outside India.
OCBs include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of atleast 60% by individuals of Indian nationality or origin resident outside India
An overseas trust in which atleast 60% of the beneficial interest is irrevocably held by such persons is also an OCB.
The ownership interest should be actually held by the individuals mentioned above and not in the capacity as nominees.

Overseas Citizenship of India (OCI)

The Indian government grants Overseas Citizenship of India (OCI) to people of Indian origin who are citizens of those countries that allow dual citizenship. This does not confer on the OCI card-holder the citizenship of India, but a recognition that they have a link with India.
OCIs are granted benefits under the Citizenship Act, 1955. Presently the benefits include:
(i) multiple entry, multi-purpose life long visa to visit India;
(ii) exemption from reporting to police authorities for any length of
stay in India; and
(iii) parity with NRIs in financial, economic and educational fields
except in the acquisition of agricultural or plantation properties.

Any additional benefits to OCIs in future will be notified by the Ministry of Overseas Indian Affairs (MOIA).
A person registered as OCI is eligible to apply for grant of Indian citizenship under section 5(1)(g) of the Citizenship Act, 1955 if he/she is registered as OCI for five years and has been residing in India for one year
out of the five years before making the application.