Date: Mar 22, 2002                                                  

Lock-in Period for Repatriation of Sale Proceeds of Immovable Properties for NRIs/PIOs removed

With a view to providing greater facilities to non-resident Indians (NRIs)/persons of Indian origin (PIOs), the Reserve Bank of India has removed the lock-in period for repatriation of sale proceeds of immovable property purchased in India by them through inward remittances. The sale proceeds allowed to be repatriated should, however, not exceed the foreign exchange brought in to acquire the property. This liberalised facility of remittance will also be available to NRIs/PIOs who have already made payment for acquiring immovable property in India.

Currently NRIs/PIOs are permitted to repatriate sale proceeds of immovable property only after a lock-in period of three years from the date of acquisition or payment of final instalment for the purchase, whichever is later. The repatriation of sale proceeds is limited to the foreign exchange brought in to purchase the property.

A notification for carrying out suitable amendments in the regulations is being issued and on its publication in the Official Gazette, it would be possible for NRIs/PIOs to effect such remittances without the prior approval of the Reserve Bank.

Until further notice, the applications for such remittances may be made to the Regional Offices of the Reserve Bank.

Alpana Killawala
General Manager

Press Release: 2001-2002/1063