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Master Circular on NRI/PIO Property Acquisition in India

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2010-11/15 · issued 01 Jul 2010 · ~2 min read

Quick answerRBI's 2010 Master Circular consolidates rules for NRIs/PIOs buying immovable property in India (excluding farmland). It permits purchase via inward remittance or NRE/FCNR/NRO accounts, and outlines transfer and repatriation rules. Banks must ensure compliance with FEMA provisions.

What changed

This Master Circular compiles existing FEMA regulations on acquisition and transfer of immovable property in India by NRIs, PIOs, and foreign nationals into a single reference document. It includes a sunset clause, expiring on July 1, 2011, after which it will be replaced by an updated Master Circular.

What it means for you

Banks must verify that NRIs and PIOs use only permitted payment methods (inward remittance or specific accounts) for property purchases. The circular clarifies that no reporting to RBI is needed for residential/commercial purchases by NRIs under general permission. It also restricts property types (no agricultural land, plantation, or farmhouse) and requires prior RBI approval for citizens of certain countries.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Ensure NRI/PIO customers use only inward remittance, NRE, FCNR(B), or NRO accounts for property payments; reject traveler's cheques or foreign currency notes.
Verify that the property type is not agricultural land, plantation, or farmhouse before processing transactions.
Advise NRIs that no RBI filing is required for residential/commercial purchases under general permission.
Check if the buyer is a citizen of a country requiring prior RBI approval for property transactions.
Maintain records of all property-related remittances and account debits for audit and compliance.

Who it affects

Category-I Authorised Dealer banks, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Foreign nationals of non-Indian origin, Foreign embassies and diplomats

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 05:28 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Can an NRI buy agricultural land in India?

No, the circular explicitly prohibits NRIs from purchasing agricultural land, plantation property, or farm houses. Only residential or commercial property is allowed under general permission.

What payment methods are allowed for an NRI buying property?

Payment must come from funds received via inward remittance from outside India, or by debiting an NRE, FCNR(B), or NRO account. Traveler's cheques and foreign currency notes are not permitted.

Does an NRI need to report a property purchase to RBI?

No, if the property is residential or commercial and purchased under general permission, no documents need to be filed with the Reserve Bank.

📜 Read the original circular — full text as issued by RBI

RBI/2010-11/15
 Master Circular No.15/2010-11 
 July 01, 2010 
 To,
 All Category - I Authorised Dealer banks
 Madam / Sir,
 Master Circular on Acquisition and Transfer of Immovable Property in India by 
 NRIs/PIOs/Foreign Nationals of Non-Indian Origin 
 Acquisition and transfer of immovable property in India by NRIs / PIOs / Foreign Nationals of Non-Indian Origin is regulated in terms of Sub-sections (3), (4) and (5) of Section 6 of the  Foreign Exchange Management Act, 1999 read with Notification No. FEMA 21/ 2000-RB dated May 3, 2000. The regulatory framework and instructions issued by the Reserve Bank in this regard have been compiled in this Master Circular . The list of underlying circulars/notifications is furnished in Appendix. 
 2.This Master Circular is being issued with a sunset clause of one year.  This circular will stand withdrawn on July 1, 2011 and be replaced by an updated Master Circular on the subject.
 Yours faithfully,
 (Salim Gangadharan)
 Chief General Manager-in-Charge INDEX 

 1

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/15 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5798&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.