Rules 24 and 25 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter IX of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 deals with immovable property in India. Rule 24 says what an NRI or an OCI may acquire by purchase, gift or inheritance and to whom the property may be transferred. Rule 25 lets a foreign spouse who is neither an NRI nor an OCI join in one purchase.
This article is based on the Rules as notified on 17 October 2019 (S.O. 3732(E)) as amended by the notifications named in this article; the latest amendment consulted is S.O. 4870(E) dated 2 September 2026. Chapter IX, rules 24 to 33, is as notified on 17 October 2019; none of the 19 amending notifications up to 2 September 2026 changes it. Amendments made after that date should be checked in the Gazette. There is no official consolidated text. The Reserve Bank's Master Direction - Acquisition or Transfer of Immovable Property, which this article uses as a cross-check, carries the date "updated as on September 01, 2022" and may not reflect later changes. For NRI filings that follow a purchase or sale, see our NRI tax filing service.
An NRI or an OCI may acquire immovable property in India other than agricultural land, farm house or plantation property (rule 24(a)); may receive it by gift from a resident, an NRI or an OCI who is a "relative" (rule 24(b)); may inherit property (rule 24(c)); and may transfer it to a resident (rule 24(d)) or, other than agricultural land, farm house or plantation property, to an NRI or OCI (rule 24(e)). Payment must come from inward remittance through banking channels or a non-resident account, never by traveller's cheque or foreign currency notes. A foreign spouse of an NRI or OCI may jointly acquire one such property if the marriage has been registered and subsisted for at least two years (rule 25).
Rule 24: acquisition and transfer by an NRI or an OCI
Rule 24 is headed "Acquisition and transfer of property in India by a NRI or an OCI". It has five clauses, which are set out in the table with the Master Direction's matching paragraph.
| Clause | Permission | Limit or condition in the Rule | Master Direction paragraph |
|---|---|---|---|
| (a) | Acquire immovable property | Not agricultural land, farm house or plantation property; consideration paid from inward remittance through banking channels or funds in a non-resident account; no payment by traveller's cheque, foreign currency notes or any other mode not specified | 3.1.1, 3.3 |
| (b) | Acquire by gift | Not agricultural land, farm house or plantation property; the donor is a person resident in India, an NRI or an OCI who is a "relative" under clause (77) of section 2 of the Companies Act, 2013 | 3.1.2 |
| (c) | Acquire by inheritance | From a person resident outside India who acquired the property (i) in accordance with the foreign exchange law at the time of acquisition or these rules, or (ii) from a person resident in India | 3.1.3, 3.1.4 |
| (d) | Transfer to a person resident in India | Any immovable property | 3.2 |
| (e) | Transfer to an NRI or an OCI | Not agricultural land, farm house or plantation property | 3.2 |
Reading clause (a)
The first proviso says the consideration, if any, for transfer shall be made out of funds received in India through banking channels by way of inward remittance from any place outside India, or funds held in any non-resident account maintained in accordance with the Act, rules or regulations. The further proviso says no payment shall be made by traveller's cheque, by foreign currency notes or by any other mode other than those specifically permitted. The Master Direction (paragraph 3.3) names the accounts: by debit to an NRE, FCNR(B) or NRO account. That list is the Master Direction's own and is not in the Rule. See our guide on NRI accounts: NRE, NRO and FCNR.
Reading clause (b) and the "relative" test
The relative must fall within section 2(77) of the Companies Act, 2013; the Rule cites it by number only. The Master Direction (paragraph 2.5) repeats the reference. The restriction on agricultural land, farm house and plantation property applies to the gift route as well as to purchase. Our guide on gifting property to NRIs discusses the practical side.
Reading clause (c)
Inheritance has two limbs: from a person resident outside India who acquired the property lawfully under the foreign exchange law then in force or under these Rules, or who got it from a person resident in India. Clause (c) contains no carve-out for agricultural land, so, as printed, the inheritance route is not restricted by property type; the Master Direction (paragraph 3.1.3 and 3.1.4) also lists inheritance without that carve-out. Section 6(5) of the Act protects property held or inherited from a person resident in India; see our article on section 6(4) to (6) of the FEMA, 1999.
Reading clauses (d) and (e)
An NRI or OCI may sell to a resident without a property-type restriction. A sale to another NRI or OCI excludes agricultural land, farm house and plantation property. The Master Direction adds, for gifts to an NRI or OCI, that the transferee must be a relative (paragraph 3.2).
Rule 25: joint acquisition by the spouse of an NRI or an OCI
A person resident outside India, not being an NRI or an OCI, who is a spouse of an NRI or an OCI may acquire one immovable property (other than agricultural land, farm house or plantation property) jointly with the NRI or OCI spouse. The Rule's provisos, stated as printed:
- (a) consideration shall be made out of funds received in India through banking channels by inward remittance, or funds held in a non-resident account maintained under the Act and the Reserve Bank's regulations;
- (b) no payment by traveller's cheque, foreign currency notes or any other mode not specifically permitted;
- First proviso: the marriage has been registered and has subsisted for a continuous period of not less than two years immediately preceding the acquisition;
- Further proviso: the non-resident spouse is not otherwise prohibited from such acquisition.
The Master Direction (paragraphs 4.1 to 4.4) restates the same four points. Separately, rule 31 bars citizens of a list of countries from acquiring or transferring immovable property in India without Reserve Bank permission; it is explained in our article on transfer of property and citizens of certain countries, which is the place to check whether a spouse is affected.
What the Rules and the Master Direction leave out
The Rules do not set a limit on the number of properties an NRI or OCI may buy, do not describe any reporting form for such a purchase and state no tax rate (rule 32 says only that transactions are subject to applicable taxes and other duties or levies). Sale proceeds and their repatriation are in rule 29; see our article on repatriation of property sale proceeds. For wider guidance, see our guides on immovable property for NRIs, PIOs and OCIs and NRI property purchase of agricultural and residential property. Tax is covered in our income-tax guides.
A worked example
Anita, an NRI, wants to buy a flat in Pune from a developer. Rule 24(a) permits it because the flat is neither agricultural land, a farm house nor plantation property. She pays from inward remittance through her bank and from her NRE account; she does not use a traveller's cheque or cash in foreign currency. Her husband, a citizen of another country who is not an NRI or OCI, can be a joint owner of this one property under rule 25 if their marriage has been registered and has lasted at least two years before the purchase, and he is not otherwise prohibited. Later, Anita's father, resident in India, gifts her a house; rule 24(b) permits that if he is her relative under the Companies Act definition.
Need help with an NRI property transaction?
Purchases, gifts and sales by NRIs raise FEMA and tax questions in sequence. Our NRI tax filing team works on the Indian-side filings and can coordinate with your advisers on the FEMA side.
Key takeaways
- NRIs and OCIs may buy or receive as gift immovable property in India other than agricultural land, farm house or plantation property.
- Inheritance is permitted from a person resident outside India who acquired lawfully or from a person resident in India.
- Payment must be through inward remittance or a non-resident account; not by traveller's cheque or foreign currency notes.
- A foreign spouse of an NRI or OCI may jointly acquire one property after a registered marriage of at least two years.
- The Master Direction consulted is dated 1 September 2022; check later changes.
Read next
- Rules 26 to 28 of the FEM (Non-debt Instruments) Rules, 2019: property for branch offices, embassies and long-term visa holders
- Rule 29 of the FEM (Non-debt Instruments) Rules, 2019: repatriation of property sale proceeds
- Rules 30 to 33 of the FEM (Non-debt Instruments) Rules, 2019: transfer of property and citizens of certain countries
- NRI property sale and repatriation of proceeds
Disclaimer: Based on the Gazette text of the instrument this article names, as notified and as amended by the notifications named in the article (for the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 the latest amendment consulted is S.O. 4870(E) dated 2 September 2026), as consulted on 2 October 2026. There is no official consolidated text; the provisions were read with each amendment applied. Sectoral caps, entry routes, conditions, forms and time limits change by notification, press note and circular; later changes should be checked on the Gazette, DPIIT and Reserve Bank sites. This article is general information, not legal advice; check the official text before acting.