Non Resident Indian Nationals can bring into India gold upto 10 Kgs on payment of custom duty @ of Rs. 250/- per 10 gms. and silver upto 100 Kgs. on payment of custom duty @ Rs.500 per Kgs. as part of their baggage once in six months. The gold/silver so brought can be sold to residents against payment in rupees, by mean of crossed cheque in India, which has to be credited to the NRO account of the importer.

HOUSING

Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. Sundaram BNP Paribas Home, etc. to grant housing loans to non-resident Indian nationals for acquisition of houses/flats for self-occupation subject to certain conditions.

INSURANCE

The New Indian Insurance Company Ltd., a subsidiary of the General Insurance Corporation of India has devised a scheme for personal accidents and expenses following death (occurring in foreign countries due to accidents or sickness). This is a special scheme offered to meet the requirement of Non-resident Indians. The premium payable is very nominal in comparison to the risk coverage. The New India Insurance Corporation has entered into an agreement with the Government of Kerala for the implementation of the scheme. The Indian Investment Centre is pursuing the matter with other states for the successful implementation of the scheme by these states.

EDUCATION

In Private Medical Colleges/Dental Colleges, 15% of seats are reserved for admission to children of NRIs/PIOs. They are not required to appear for any admission test. There are about 3000 seats available in such Institutions which means that the availability of seats for children of NRIs/PIOs in such Institutions will be only 450.

In other Universities and Colleges, students including NRIs are admitted as per Government of India Policy and they have to pay fees as applicable to Indian students.

RESURGENT INDIA BONDS

As a follow up of the Budget Speech made by the Union Finance Minister, the State Bank of India launched "Resurgent India Bonds" denominated in foreign currency (US Dollars, Sterling Pounds and Deutsche Mark) for subscription by NRIs. The Resurgent India Bonds generated deposits worth US Dollars 4.16 billion.

INDIA MILLENNIUM SCHEME

The Unit Trust of India will be launching a new "India Millennium Scheme" which will be open for subscription in dollars only by NRIs. The money collected under this scheme would be invested in shares of Indian companies with high potential for growth and in high quality Indian debt.

PIO CARDS

The Government has decided to draw up a scheme for issuance of Persons of Indian Origin (PIO) Cards for Persons of Indian Origin living abroad and having foreign passports. The PIO cards, which would be extended to Persons of Indian Origin settled in countries to be specified by the Government would, besides introducing a visa free regime, also confer some special economic, educational, financial and cultural benefits to the holders of these Cards.

INCORPORATION OF A COMPANY

With a view to facilitating the work of Non resident Indians intending to set up new industrial project in India, the Reserve Bank of India has granted general permission to (a) Non Resident Indians or Persons of Indian Origin to subscribe to the Memorandum and Articles of Association and take up shares of an Indian company for the purpose of its incorporation and (b) the company to issue shares to Non Resident Indians/Persons of Indian Origin subject, inter-alia, to the condition that the total face value of the shares to be taken up by such persons should not exceed Rs.10,000/- and the company should hold investment proposal approved by the Reserve Bank of India or Foreign investment Promotion Board for taking up its industrial activity in India or a letter of intent/industrial license/acknowledgment of Industrial Entrepreneurs Memorandum issued by the Secretariat or Industrial Assistance, Department of Industrial Policy and Promotion or provisional registration from the State Government authority.

The Indian company availing of the general permission is required to file a declaration with the Reserve Bank of India in form DSS not later than 90 days from the date of its incorporation, giving full particulars of shares acquired by Non Resident Indians/Persons of Indian Origin.

Investment by NRIs for Establishing of Schools and Colleges in India

NRIs are allowed to invest in establishing of schools and colleges in India. In case, the concerned investment is made by NRIs through a proprietary/partnership concern or Indian company on Non-repatriation basis, it will be covered under the general permission granted by RBI. In case the concerned investment is proposed to be made through an Indian company on repatriation basis it will require the specific permission from RBI for investment under the 24% scheme. If the educational institution requires affiliation to any University/Board, it will have to comply with the regulations of the concerned State/Central Government under whose jurisdiction the educational institution is located.

VISA

Persons of Indian Origin can now visit India on multi entry visa provided they hold letter of intent/acknowledgment of Industrial Entrepreneurs Memorandum/License or provisional registration with the State Director of Industries to establish industry. Persons of Indian origin may approach the Consulate General/High Commission/Embassy of India for getting endorsement on their Passport for single/multi entry purposes. The spouses of Persons of Indian Origin can also be granted multi entry visa upto 5 years.