NRI, The New Investors

As far as investment options available to NRI, the Reserve Bank of India has allowed them to invest in immovable properties.

As far as investment options available to NRI, the Reserve Bank of India has allowed them to invest in immovable properties. They are liable to use their foreign currency assets which have been earned and accumulated by them lawfully without the contravention of FERA 1973 while they were resident outside India. Moreover prior permission of RBI has to be taken in acquiring, holding, transferring or disposing of any immovable property in India. The work relating to the permission for acquisition, etc of immovable property is centralized in the Central Office of Reserve Bank (Foreign Investment Division) at Mumbai. However, the above restrictions do not apply to immovable property taken or given on lease for a period not exceeding five years.

NRI deposit or investment can be made in different types when it comes to India. Through the use of FCNR Account, RFC (Resident Foreign Currency), Term deposit accounts and NRI Stock Invest an NRI can opt for investment in India. FCNR account can be opened in five major currencies, viz., Dollar, Pound Sterling, Deutsche Mark, Euro, and Japanese Yen. Accounts are opened for periods ranging from 12 months to 3 years. Minimum amount accepted in FCNR Deposit US$1000, Pound 1000, DEM.2000, EURO 1000JPY. 15000.

Citizen of India or persons of Indian origin living outside India for a continuous of not less than one year and have become resident in India on or after 18/4/92 are eligible to maintain RFC accounts. Term deposit accounts can be opened by remittances from abroad or by transfer of funds from existing NRE/FCNR/NRO/NRSR accounts of the same person with other banks in India or from other branches of the bank or by tendering foreign currency notes/travelers cheque brought by NRIs during their visit to India. Minimum amount of deposit is Rs. 1000/-. Period of deposit ranges up to 10 years.

Presently there are certain good opportunities for stock investment for NRIs. BSE stock index (sense) has gone up by 72.9%, 13.1%, and 24.2% in the year 2003, 2004 and 2005. A steady GDP growth prospects, huge talent pool, a much stronger corporate sector and service sector with an annual growth of 8% and visible earning growth of 15 to 17% in at least 100 top Indian companies make the scenario even brighter for NRI Equity investment.

About the author:
Amitabh Kumar, a writer by profession has been part of content research team of magazines, journal dealing with NRI, non resident Indian news, stories, and issues. Presently he is content writer in website http://www.nrirealtynews.com emphasizing on NRI News, property investment scenario in India.