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OCI vs NRI vs PIO: What Each Can Buy in India (2026)
What the RBI regulations say an NRI, an OCI cardholder and a former PIO can buy, receive or sell in India, and the farmland limit that applies to all three.
Three labels cause most of the confusion: NRI, OCI and PIO. Under the RBI regulations we read, NRIs and OCI cardholders are treated alike for buying land and buildings, and the PIO card has been folded into the OCI card. The key limit is the same for all: no purchase of agricultural land, a farm house or plantation property without specific permission. This guide shows the rules and the exceptions.
Who is an NRI, an OCI and a PIO
RBI Regulation 2(c) of the Acquisition and Transfer of Immovable Property Regulations, 2018 defines a Non-Resident Indian (NRI) as a person resident outside India who is a citizen of India. Regulation 2(d) defines an OCI as a person resident outside India who is registered as an Overseas Citizen of India Cardholder. The RBI Master Direction repeats these at paragraphs 2.1 and 2.2.
The current RBI text does not define PIO; the old definition appears only in a footnote that records superseded wording. That fits the immigration position: a consulate page of the Government of India says existing PIO cardholders are deemed OCI cardholders with effect from 9 January 2015. So for land rules, a former PIO should check that the card has been converted and then be treated as an OCI.
| Label | Who | Citizenship | Land rules we read |
|---|---|---|---|
| NRI | Resident outside India | Indian citizen | Regulations 2(c) and 3 |
| OCI cardholder | Resident outside India | Foreign citizen with OCI registration | Regulations 2(d) and 3, same permissions as NRI |
| PIO | Older card category | Foreign citizen | Deemed OCI from 9 January 2015 per a consulate page; not defined in current RBI text |
What an NRI or OCI can buy without special permission
Regulation 3(a) lets an NRI or OCI acquire immovable property in India other than agricultural land, a farm house or plantation property. The Master Direction repeats this at paragraph 3.1.1. So a flat, a house, a commercial building, or a residential or commercial plot is within the general permission, subject to conditions on payment and to state law.
Regulation 3(e) lets an NRI or OCI receive a transfer of such property. Regulation 6 allows a foreign-resident spouse of an NRI or OCI to jointly acquire one property, again other than agricultural land, farm house or plantation property, if the marriage has been registered and has subsisted for a continuous period of not less than two years.
The farmland, farm house and plantation limit
Every purchase permission above carries the same exclusion: agricultural land, plantation property and farm house. We read no general permission to buy these. If a deal is offered to you as "NRI-friendly farmland", treat that as a warning, not a selling point. Read can NRIs buy agricultural land in India and FEMA 1999 and Indian land.
We could not confirm from the pages we read how RBI treats a request for specific permission, how long it takes, or whether it is granted. Do not pay any money on the assumption that permission will follow. Also note that a farm house is a defined category in RBI language; whether a particular plot of land counts as a farm house is a legal question to settle with a lawyer. See farmhouse rules in India.
Inheritance and gifts
The Master Direction allows an NRI or OCI to acquire property by inheritance from a person resident outside India (paragraph 3.1.3), if that person acquired it under the foreign exchange law in force at the time, and by inheritance from a resident (paragraph 3.1.4). The paragraphs we read state no exclusion for agricultural land, plantation property or a farm house in inheritance.
Gifts are different. Paragraph 3.1.2 repeats the agricultural land, plantation and farm house exclusion, and the gift must come from a resident in India, or from an NRI or OCI who is a relative within section 2(77) of the Companies Act, 2013. So a gift of farmland to an NRI child is not covered by the general permission, even if inheritance is. Our guides on inheriting agricultural land in India and gift deed for land show how the paperwork works.
How an NRI or OCI must pay
Paragraph 3.3(1) of the Master Direction says payment may come from funds received in India through banking channels by inward remittance from abroad, or from debit to an NRE, FCNR(B) or NRO account. Paragraph 3.3(2) bars payment by traveller's cheque, foreign currency notes or other modes. Cash is not on the list. Our page on NRE, NRO and FCNR accounts for land deals explains each account.
Selling and sending money abroad
Paragraph 3.2(1) lets an NRI or OCI transfer property to a resident in India. Transfers to other NRIs or OCIs exclude agricultural land, plantation property and farm houses.
On repatriation, paragraph 8.2 allows it for property other than agricultural land, a farm house or plantation property if the property was acquired under the foreign exchange law in force, the purchase money came through banking channels or from FCNR(B) or NRE accounts, and, for residential property, the repatriation is limited to not more than two such properties. Para 11 says acquisition by a non-resident is subject to applicable tax laws and other duties and levies. See repatriating land sale proceeds and capital gains and DTAA for NRI sellers.
Citizens of certain countries
Regulation 9 says no citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China and several other listed countries may acquire or transfer immovable property in India without RBI permission, except leases not exceeding five years. The page states that this prohibition does not apply to an OCI. We did not confirm the full country list on the page, so check the regulation itself if this affects you.
Quick comparison
| Action | NRI | OCI cardholder | Source |
|---|---|---|---|
| Buy a flat, house or non-agricultural plot | Allowed within the permission | Allowed within the permission | Regulation 3(a) |
| Buy agricultural land, farm house or plantation | Not covered by general permission | Not covered by general permission | Regulation 3(a) |
| Inherit any property from a resident | Allowed | Allowed | Master Direction 3.1.4 |
| Receive a gift of farmland | Not covered | Not covered | Master Direction 3.1.2 |
| Sell to a resident in India | Allowed | Allowed | Master Direction 3.2(1) |
| Pay with foreign currency notes or travellers cheques | Not allowed | Not allowed | Master Direction 3.3(2) |
This table is our reading of the RBI text, and state law may add limits. Rules change: check the current regulation.
State law still applies
FEMA is only one layer. Even where FEMA allows a purchase, a state may restrict who can own land. Himachal Pradesh and Uttarakhand have particular rules. Our pages on Himachal Section 118, agricultural land rules in Uttarakhand and state-wise purchase rules show the position. For NRI land risks, read NRI land fraud and POA for NRI land transactions. A broader overview is in the NRI land investment guide.
Check the card and the passport
Before you sign, confirm in writing which status you hold on the date of purchase: NRI (Indian passport, resident abroad), OCI cardholder (foreign passport with OCI), or something else. A person who is a foreign citizen without an OCI card is outside the regulations we read, and we could not confirm their position.
What is unconfirmed
We could not confirm how RBI treats an application for specific permission to buy agricultural land, the full list of countries in Regulation 9, the position of a foreign citizen who is resident outside India and holds no OCI card, or the position of an NRI who has returned to India. We also did not read the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 or the current RBI Master Direction beyond the sections cited. State laws that bar non-residents were not re-opened for this page.
Frequently Asked Questions
Can an NRI buy agricultural land in India?
Can an OCI cardholder buy a farmhouse?
Is a PIO card still valid?
Can an NRI buy a residential plot?
Can an NRI inherit farmland?
Can an NRI receive farmland as a gift?
How must the purchase be paid for?
Can an NRI sell land to a resident?
Does the OCI card make a person an Indian citizen?
Do state laws apply on top of FEMA?
Sources
- RBI: Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018 (Notification FEMA 21(R)/2018-RB)
- RBI Master Direction on Acquisition and Transfer of Immovable Property in India
- Consulate General of India, Jeddah: PIO cardholders deemed OCI cardholders from 9 January 2015
