Non-resident Indians (NRIs) and overseas citizens of India (OCIs) do not require the Reserve Bank of India’s prior approval for buying or selling immovable properties like houses in the country.

Clarifying this on Wednesday, the RBI said this excludes agricultural land, farm house and plantation property.

“At present, NRIs and OCIs are governed by provisions of Foreign Exchange Management Act (FEMA) 1999 and do not require prior approval of RBI for acquisition and transfer of immovable property in India, other than agricultural land, farm house, plantation property," RBI said in a statement.

The central bank issued the clarification as it has received a large number of queries at its various offices regarding acquisition of immovable properties by OCIs following a Supreme Court judgment relating to Foreign Exchange Regulation Act (FERA).

"It is hereby clarified that the concerned Supreme Court judgment dated February 26, 2021 was related to provisions of FERA, 1973, which has been repealed under Section 49 of FEMA, 1999," the RBI said.