The Reserve Bank of India (RBI) has issued an amendment to the definition of the term 'Person of Indian Origin' for the purpose of purchase of immovable property in India.
RBI has issued a notification to Category -1 authorised dealer banks announcing changes to an earlier Foreign Exchange Management Act (FEMA) regulation relating to acquisition and transfer of immovable property in India by foreigners.
Under the new definition PIOs would include "individuals who are not a citizens of Pakistan or Bangladesh or Sri Lanka or Afghanistan, China, Iran, Nepal or Bhutan and who, at any time, held an Indian passport or who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)."
The Government of India, has notified in the Gazette of India dated 12 November2009 an amendment to clause (c) of Regulation 2 of the notification.
RBI has asked the authorised dealer banks to bring the contents of the circular to the notice of their constituents and customers concerned.