NEW YORK (TIP): Those holding Overseas Citizen of India (OCI) cards need Reserve Bank of India’s (RBI) permission to buy agricultural land, farmhouses and plantation property. But they need not seek the RBI’s prior approval to buy or transfer immovable property in India, said the apex bank in a clarification after it received a large number of queries based on newspaper reports on a Supreme Court Judgment.

The Supreme Court’s judgment on February 26, 2021, in a civil appeal was related to provisions of FERA which has been repealed. At present, NRIs and OCIs are governed by provisions of FEMA and do not require prior approval of the RBI for acquisition and transfer of immovable property in India, other than agricultural land, farmhouse and plantation property. The sale and transfer will have to be as per the terms and conditions laid down in Chapter IX of the FEMA (Non-debt Instruments) Rules of October 17, 2019, said the RBI.