No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/4 · issued 25 Jun 2014 · ~2 min read
Quick answerRBI's 2013 master circular consolidates FEMA rules for NRIs/PIOs buying or selling immovable property in India, excluding agricultural land, plantations, and farmhouses. Payments must come via inward remittance or NRE/FCNR(B)/NRO accounts. Authorised dealers must guide compliance until the circular's sunset on July 1, 2014.
What changed
This master circular compiles all existing FEMA regulations on acquisition and transfer of immovable property by NRIs, PIOs, and foreign nationals of non-Indian origin into a single reference document. It includes updated instructions as of June 25, 2014, and carries a sunset clause, meaning it will be withdrawn and replaced by a new master circular on July 1, 2014.
What it means for you
For banks, this circular serves as a consolidated guide for processing property transactions by NRIs and PIOs, ensuring compliance with FEMA. It clarifies that NRIs and PIOs can purchase residential/commercial property (excluding agricultural land, plantations, farmhouses) without prior RBI approval, but payments must be through specified channels. Banks must verify that sale proceeds repatriation follows the rules outlined, and they should prepare for the upcoming replacement circular.
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 all NRI/PIO property transactions comply with FEMA 21/2000-RB and this master circular's payment rules.
Verify that payments for property purchases are made only via inward remittance or debit to NRE/FCNR(B)/NRO accounts, not through traveller's cheques or foreign currency notes.
Advise NRIs/PIOs that no documentation needs to be filed with RBI for residential/commercial property purchases under general permission.
Prepare to transition to the updated master circular expected after July 1, 2014, by reviewing the sunset clause implications.
Train staff on the specific restrictions for agricultural land, plantation property, and farmhouse transactions.
Who it affects
All Category-I Authorised Dealer banks, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Foreign nationals of non-Indian origin residing outside India, Foreign embassies, diplomats, and consulate generals
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 14:58 IST
Status change: withdrawn03 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 under this circular?
No, the circular explicitly states that NRIs cannot purchase agricultural land, plantation property, or farm houses. These categories are excluded from the general permission.
What payment methods are allowed for an NRI buying a residential property?
Payment must be made through funds received via inward remittance from outside India or by debiting an NRE, FCNR(B), or NRO account. Traveller's cheques and foreign currency notes are not permitted.
Does an NRI need to file any documents with RBI after purchasing a residential property?
No, if the purchase is made under the general permission, the NRI is not required to file any documents with the Reserve Bank.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/4
Master Circular No. 4/2013-14
(Updated as June 25, 2014)
July 1, 2013
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 may be referred to for general guidance. The Authorised Dealer Category – I banks and Authorised banks may refer to respective circulars / notifications for detailed information, if so needed.
3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2014 and be replaced by an updated Master Circular on the subject.
Yours faithfully,
(C D Srinivasan)
Chief General Manager
INDEX
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/4 · issued 25 Jun 2014. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=8095&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.
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