About NRI

A. Definition of Non-Resident Indians
Under the Foreign Exchange Regulation Act of 1973, Non-Resident Indians are:

a) Indian citizens who stay abroad for employment or for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad;

OR

b) Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources;

OR

c) Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organization (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP);

OR

d) Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.

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B. Guidelines Issued by the Reserve Bank of India for grant of Housing Loans to Non-Resident Indians

The Reserve Bank of India (RBI) has issued certain guidelines for granting loans to Non-Resident Indians by HDFC. The guidelines are:

a) The loan amount should not exceed 85% of the cost of the dwelling unit.

b) Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.

c) Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to HDFC from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.

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