Relativity theory: Kin can repay NRI/PIO home loans

O home loansRBI ANNUAL POLICY 2004-05/ MARKET MEASURESOur Banking Bureau / Mumbai May 19,2004

The Reserve Bank of India (RBI) yesterday allowed the close relatives of non-resident Indians (NRIs) or people of Indian origin (PIO) to pay instalments of home loans in rupees, for loans NRIs or PIOs had taken.

This is part of the foreign exchange liberalisation measures the RBI has adopted.

NRIs and PIO can avail of home loans in rupees from authorised dealers or housing finance institutions approved by the National Housing Bank (NHB). These loans are repaid by the borrowers either by way of inward remittances through normal banking channels or by debiting their NRE/ FCNR(B) /NRO/ NRNR/ NRSR accounts. Alternatively, the loans can also be repaid from the rental incomes from the property.

Now the RBI has proposed allowing NRIs