RBI on mode of payment for NRIs buying property in India

The Reserve Bank of India (RBI) on Wednesday clarified that non-resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.

Also, they can pay through the funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by Reserve Bank of India (RBI) from time to time, the apex bank said.

Notably, the NRIs and PIO can acquire immovable property in India other than agricultural property, plantation or a farm house.

Source: http://www.zeenews.com/znnew/articles.asp?aid=315965&ssid=52&sid=BUS