Reserve Bank of India (RBI) Guidelines on NRI Investment

I. PERMISSION FOR PURCHASE OF RESIDENTIAL PROPERTY/COMMERCIAL PROPERTY.

1: NRIs holding Indian passports — No permission required

2: NRIs holding foreign passports — Intimation to RBI via form IPI - 7 within 90 days of purchase of property or final payment of consideration. Funds Through NRE / NRO accounts.

II. SALE OF PROPERTY

1: Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India.

III. REPATRIATION OF SALE PROCEEDS

1:Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.

2: The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties. The sale has to have taken place after 3 years from the date of final purchase deed or from the date of final payment.

3 :Application of repatriation (IPI-8) has to be done within 90 days of the sale of the property.

IV. INCOME FROM PROPERTY

1:NRIs can let out immovable property in India. The rental income from the investment has to be credited to the NRO account.

2:Subject to changes from time to time

3:E. & O.E.

1. RENTAL RETURNS

The rental returns on an investment in

1:Residential property in Bangalore is 5%-6% p.a. Commercial

2:property in Bangalore are normally in the range of 12%-15% p.a. on the invested amount.

2. APPRECIATION OF PROPERTY

Conservative estimate of appreciation on an investment in property in Bangalore is about 20% p.a. NRIs start to gain by investing in Real Estate when compared to the investments on the NRNR / FCNR deposits.