Rules 30 to 33 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.
The last four rules of Chapter IX of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 close the property regime. Rule 30 bars a person resident outside India from transferring immovable property in India, with exceptions. Rule 31 bars citizens of a listed group of countries from acquiring or transferring such property without Reserve Bank permission. Rule 32 requires banking channels and payment of taxes. Rule 33 saves existing holdings.
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. Rules 30 to 33 are as notified on 17 October 2019; none of the 19 amending notifications up to 2 September 2026 changes them. 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, used as a cross-check, is dated "updated as on September 01, 2022". For a transaction with a foreign party, our legal consultation service can review the position.
Rule 30(1): save as the Act or Rules provide, no person resident outside India shall transfer immovable property in India, but the Reserve Bank may permit it, an authorised dealer may allow a charge to secure an external commercial borrowing, and an authorised dealer may create a mortgage on an NRI or OCI director's property for a company's overseas loan. Rule 30(2): property lawfully acquired may be transferred to a resident through banking channels. Rule 31: citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Hong Kong, Macau and DPRK need prior Reserve Bank permission to acquire or transfer (lease up to five years excepted); an OCI is exempt; "citizen" includes legal entities.
Rule 30: prohibition on transfer by non-residents
Sub-rule (1) and its provisos
Sub-rule (1): save as otherwise provided in the Act or rules, no person resident outside India shall transfer any immovable property in India. Provisos:
| Proviso | Exception |
|---|---|
| (a) | The Reserve Bank may, for sufficient reasons, permit the transfer subject to conditions it considers necessary |
| (b) | An authorised dealer bank may, subject to Reserve Bank directions, permit a person resident in India, or someone on that person's behalf, to create a charge on his immovable property in India in favour of an overseas lender or security trustee, to secure an external commercial borrowing |
| (c) | An authorised dealer in India, being the Indian correspondent of an overseas lender, may, subject to Reserve Bank directions, create a mortgage on immovable property in India owned by an NRI or an OCI who is a director of a company outside India, for a loan to be availed by that company from the overseas lender |
A further proviso adds two conditions to item (c): (i) the funds shall be used by the borrowing company only for its core business purposes overseas; (ii) in case of invocation of the charge, the Indian bank shall sell the immovable property to an eligible acquirer and remit the sale proceeds to the overseas lender. Item (b) names the "Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000" as printed; the 2018 Borrowing and Lending Regulations have since come into force and the reader should check the current instrument. See our article on the ban on borrowing and lending, defined terms and end-use limits. The Master Direction (paragraph 10.1) adds, as its own directions, that the no-objection for a charge is granted only to a resident ECB borrower, that the charge must be co-terminus with the loan, that the no-objection is not a permission for the lender to acquire the property and that on invocation the property must be sold only to a resident, with the proceeds used to liquidate the ECB. Paragraph 10.2 repeats item (c).
Sub-rule (2)
A person resident outside India who has acquired any immovable property in India in accordance with the foreign exchange laws in force at the time of acquisition, or with the general or specific permission of the Reserve Bank, may transfer it to a person resident in India provided the transaction takes place through banking channels in India and provided further that the resident is not otherwise prohibited from such acquisition. The Master Direction (paragraph 10.3) says the same, and adds in paragraph 10.4 that any transfer not covered requires the Reserve Bank's prior permission. Compare rule 24(d), which allows an NRI or OCI to transfer to a resident; see our article on rules 24 and 25.
Rule 31: citizens of certain countries
Rule 31 says no person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Hong Kong or Macau or Democratic People's Republic of Korea (DPRK), without prior permission of the Reserve Bank, shall acquire or transfer immovable property in India, other than lease not exceeding five years.
- Proviso: the prohibition does not apply to an OCI.
- Explanation: for this rule, "citizen" includes natural persons and legal entities.
The Master Direction (paragraphs 9.1 and 9.2) restates the list and the OCI exemption, and notes that the Rules do not apply to acquisition or transfer on a lease not exceeding five years (paragraph 1.1). The rule applies on its own wording to legal entities of those countries, so a company incorporated in a listed country is within it. How the rule sits beside rule 26, which also refers to the listed countries for branch offices, is shown in our article on rules 26 to 28. Rule 28, the special permission for long-term visa holders, is in the same article. The rule prints no procedure for the Reserve Bank permission.
Rule 32: banking channels and taxes
Rule 32, "Miscellaneous", says any transaction involving acquisition or transfer of immovable property under the Rules shall be undertaken (a) through banking channels in India and (b) subject to payment of applicable taxes and other duties or levies in India. The Master Direction repeats it in paragraphs 10.6 and 11. The Rule names no tax, section or rate; for tax on property transactions, see our income-tax guides.
Rule 33: savings
Any existing holding of immovable property in India by a person resident outside India, made in accordance with the policy in existence at the time of such acquisition, would not require any modification to conform to the Rules. The Master Direction (paragraph 10.7) repeats it. The rule protects holdings that were lawful when acquired; it does not say that transfer of such holdings escapes rule 30.
Putting rules 24 to 33 together
| Who | Acquisition | Transfer |
|---|---|---|
| NRI or OCI | Rule 24 | Rule 24(d) and (e); rule 29 for proceeds |
| Spouse of NRI or OCI | Rule 25 (joint, one property) | Rule 30 |
| Branch or place of business | Rule 26 | Rule 26(b) mortgage; rule 30 |
| Embassy, diplomat, consulate general | Rule 27 | Rule 27 |
| Long-term visa holder | Rule 28 | Rule 28(f) |
| Citizen of a listed country | Rule 31 (permission) | Rule 31 (permission) |
| Any other non-resident | Barred, save as provided | Rule 30 |
For background reading, see our guides on immovable property for NRIs, PIOs and OCIs and gifting property to NRIs.
A worked example
Pelican Logistics Limited, a company incorporated in a listed country, wants to buy a warehouse in India outright. Rule 31 requires prior Reserve Bank permission, because "citizen" includes legal entities, unless the arrangement is a lease not exceeding five years. In another case, Mr. Chen, an NRI, owns a flat lawfully acquired in India and sells it to a resident through his bank; rule 30(2) allows that provided the resident is not otherwise prohibited. If Mr. Chen is a director of a company abroad and wants to secure that company's loan with his Indian flat, rule 30(1)(c) allows an authorised dealer, as the Indian correspondent of the overseas lender, to create a mortgage, on the conditions set out in the further proviso.
Need help with a cross-border property transaction?
Where a buyer, seller or lender is a foreign national or entity, the rules in this chapter must be read together. Our legal consultation team can review the transaction before documents are signed.
Key takeaways
- A non-resident cannot transfer Indian immovable property save as provided; the Reserve Bank may permit, and charge and mortgage exceptions exist.
- Lawfully acquired property may be sold to a resident through banking channels if the resident is not otherwise prohibited.
- Citizens, including legal entities, of eleven listed countries or territories need prior Reserve Bank permission, except for leases up to five years; OCIs are exempt.
- All transactions run through banking channels and bear applicable taxes.
- Existing holdings made under the policy then in force need no modification.
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 24 and 25 of the FEM (Non-debt Instruments) Rules, 2019: property purchase by NRI, OCI and spouse
- Immovable property for NRIs, PIOs and OCIs in India
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.