What are the Rules for NRI Investments in India?

DV Posted by: Dhruv Verma
• 20 September, 2025
2 Reply

The rules for NRI investments in real estate in India for NRIs are:   
 

  • A non-resident Indian can purchase any immovable property in India except agriculture and plantation lands. For this, NRIs should pay out the funds earned in India by a Non-resident account according to the FEMA guidelines or normal banking channels. 
     
  • If the payments are made through any other mode than it is not permitted. Travellers' foreign currency and cheques are not acceptable.
     
  • If any NRI has inherited plantation or agricultural land, then he or she should transfer it to the Indian residents who are permanently residing in India. If an NRI has a property apart from the plantation or agricultural land, then he or she can sell it to a person living outside India who is a person of Indian origin (PIO), an Indian citizen, or a person resident in India.
     
  • The property can be transferred in the form of a gift to an NRI or to a person residing in India or a PIO.
     
  • No citizen of Bangladesh, Bhutan, Nepal, Sri Lanka, Iran, Afghanistan, China, or Pakistan is allowed to purchase any immovable property in India. However, they can get it for a five-year lease with the permission of the Reserve Bank of India.

Tags : Rules for NRI Investments, NRI Investments in India

  • Jhanvi Menon 24 September, 2025

    Guidelines for NRI Investments in India: 

     

    • You must be an NRI and have a Permanent Account Number. 
    • You need to open a demat or trading account to start investing in stocks in India. You can open your demat account through a registered broker or Bank under PINS. 
    • You can start investing in mutual funds through your NRE/NRO accounts or with your broker, bank, and AMCs. 
    • If you invest from an NRO account, then all your investments are repatriable. 
    • If you invest through an NRO account, then you will repatriate only 1 million USD in a financial year. 

     

  • Deepa Verma 22 September, 2025

    The activities given below are excluded from the NRI Investments: 

     

    • Tea sector
    • Courier services 
    • Broadcasting
    • Print Media
    • Asset Reconstruction Companies
    • Atomic Minerals
    • Development of Integrated Township
    • Defense and strategic Industries
    • Operation and establishment of satellites
    • Retail trading
    • Agriculture and Plantation
    • Investing companies in the service sector and Infrastructure
    • Postal services
    • Gambling and Betting
    • Housing and Real estate business
    • Lottery business
    • Petroleum refining, natural gas, LNG pipelines

     

Join The Discussion

Share Your Thoughts and Connect with Others.

Releated Topics

  • What Is the Best Time to Sell Property in India to Save Tax?

    I’m an NRI living in the UK and considering selling a residential property I own in India. Before finalising the sale, I want to understand whether there is a better...

    • 3 Reply
    • 13 Views

  • Which Investments Need RBI Approval in India?

    Hi everyone, I’m an NRI living abroad and planning to invest some savings in India. I’m considering a few options, including shares in an Indian company, investing in a family...

    • 3 Reply
    • 13 Views

  • Are Cryptocurrency Investments Allowed for NRIs?

    I am an NRI living in the United States and have been considering investing a small amount in cryptocurrencies such as Bitcoin and Ethereum. I already have an NRE account...

    • 3 Reply
    • 14 Views

  • Which Documents Delay Property Sales the Most?

    I’m an NRI living in Australia and planning to sell a residential property that I own in India. I have started speaking with potential buyers, but I want to make...

    • 3 Reply
    • 10 Views

  • Can NRIs Invest Freely in Indian Businesses?

    I’m an NRI living in the USA and considering investing in a business in India. I’m exploring a few options, including investing in an existing private limited company, starting a...

    • 3 Reply
    • 16 Views

  • How Can I Save Capital Gains Tax on Property Sales?

    I am an NRI living in the UK and planning to sell a residential property that I own in India. The property has appreciated considerably since I purchased it, so...

    • 3 Reply
    • 12 Views

  • Can an NRI Manage an Indian Bank Account Without Visiting India?

    I recently moved to Dubai for work and my Indian Bank savings account was converted to an NRO account after my residential status changed. I am trying to understand how...

    • 3 Reply
    • 65 Views

  • Does Indian Bank Offer Special Debit Cards or Services for NRIs?

    I recently became an NRI and opened an NRE savings account with Indian Bank. I was wondering whether Indian Bank has any special debit cards or additional banking services specifically...

    • 3 Reply
    • 67 Views

  • NRI Returning to India: How Does Your Tax Status Change?

    I’ve been living in the US for around seven years and am planning to move back to India permanently later this year. I’m trying to understand what happens to my...

    • 6 Reply
    • 105 Views

  • What Is Section 80EEB of the Income Tax Act and Who Can Claim It?

    I'm filing my Income Tax Return for AY 2026–27 and came across Section 80EEB of the Income Tax Act while checking deductions. I understand it's related to electric vehicles, but...

    • 3 Reply
    • 123 Views
Popular Categories
confused img
Can’t find an answer?

Let Savetaxs guide you to the perfect solution for all your queries.

comunity img

Join Our Facebook Community of
NRIs/OCIs Like You

Join Community
Join Community