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Who
is non-resident Indian (NRI)? |
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An Indian Citizen who
stays abroad for employment/carrying on business or vocation outside India or stays abroad
under circumstances indicating an intention for an uncertain duration of stay abroad is a
non-resident. (Persons Posted in U.N. organisations and official deputed abroad by
Central/State Governments and Public Sector undertakings on temporary assignments are also
treated as non-temporary assignments are also treated as non-residents). Non-resident
foreign citizens of Indian Origin are treated on par with non- resident Indian citizen
(NRIs). |
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Who is a
person of Indian Origin? |
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- For the purposes of Availing of the facilities of opening and maintenance of bank
accounts and investments in shares/securities in India :
A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of
Indian origin, if,
- he, at any time, held an Indian passport, or
- he or either of his parents or any of his grand parents was a citizen of India by virtue
of the Constitution of India or Citizenship Act, 1955 (57 of 1955).
Note : A spouse (non 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 above
purposes provided the bank accounts are opened or investments in shares/securities in
India are made by such persons only jointly with their NRI spouses.
- For investments in immovable properties:
A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri
Lanka or Napal), is deemed to be of Indian origin if,
- he held an Indian passport at any time, or
- he or his father or paternal grand-father was a citizen of India by virtue of the
Constitution of India or the Citizenship Act, 1955 (57 of 1955).
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What is
an OCB? |
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Overseas Corporate Bodies
(OCBs) are bodies predominantly owned by individuals of Indian nationality or origin
resident outside India and 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 as also overseas
trusts in which atleast 60% of the beneficial interest is irrevocable held by such
persons. Such ownership interest should be actually held by them and not in the capacity
as nominees, The various facilities granted to NRIs are also available with certain
exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs
continues to be atleast 60%. |
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Are
OCBs required to produce any certificate regarding ownership/beneficial interest in them
by NRIs? |
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Yes. In order to
establish that the ownership/beneficial interest in any OCB held by NRIs is not less than
60%, the concerned body/trust is required to furnish a certificate from an overseas
auditor/chartered accountant/certified public accountant in form OAC where the
ownership/beneficial interest is directly held by NRIs, and in form OAC 1 where it is held
indirectly by NRIs and further that such ownership interest is actually held by them and
not in the capacity as nominees. |
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What
are the various facilities available to NRIs/OCBs? |
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NRIs/OCBs are granted the
following facilities :
- Maintenance of bank accounts in India.
- Investments in securities/shares of, and deposits with,Indian firms/companies.
- Investments in immovable properties in India.
Details of these facilities are given in Chapters II, III and IV.
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Source: Reserve Bank of India |
