The Reserve Bank of India (RBI) today clarified that Non-Resident Indians (NRI) and Persons of Indian Origin (PIO) are not required to report to the central bank the details of transactions while purchasing immovable property in India, an announcement which is likely to encourage Indian diaspora to invest in the country.
"It is clarified that the extant regulations do not prescribe any reporting requirements for transactions where a person resident outside India who is a citizen of India or a PIO... Acquire/s immovable property in India," the RBI said.
The clarification follows confusion over whether NRIs and PIOs, like foreigners, too have to file a declaration with the Reserve Bank within 90 days from the date of acquisition of properties.
Foreigners make the declaration in IPI form.
"Form IPI has been, accordingly, amended for greater clarity," the central bank said.