East Bengaluru buyer answers
Can OCI cardholders buy flats in Bengaluru?
Direct answer: Yes. The OCI property purchase India rules under FEMA match an NRI's: you can buy flats, houses, plots and commercial property without RBI approval, but not farmland, farmhouses or plantations. Pay through Indian banking channels or NRE, FCNR(B) or NRO accounts. A 2021 Supreme Court ruling didn't change this, the RBI says.
Disclosure: acre&key’s advice is free to buyers.
Verify with your lawyer: this page is general information, not legal advice. Have a property lawyer check FEMA compliance, title and your power of attorney.
Key takeaways
- Allowed: residential and commercial property, with no limit on numbers (FEMA Non-Debt Instruments Rules 2019, Rule 24).
- Not allowed to buy: agricultural land, farmhouses, plantations. You can inherit them.
- Gifts: you can receive property as a gift only from a relative.
- No RBI approval needed: the RBI clarified this on 29 Dec 2021.
- Our CARD check: category, account, relatives, documents.
If you hold an Overseas Citizen of India card, you've probably read worrying headlines about property. Here's what the rules say, with the cash and loan maths for a typical flat. Most of it is the same as for NRIs, so our NRI buying guide covers the process in more detail.
What can an OCI buy, gift and inherit?
The RBI's property FAQ sets out Rule 24 of the FEMA (Non-Debt Instruments) Rules 2019:
| Transaction | Allowed for an OCI? | Rule |
|---|---|---|
| Buy a flat, house, plot or commercial property | Yes, from a resident, NRI or OCI | 24(a) |
| Buy agricultural land, a farmhouse or plantation | No | 24(a) |
| Receive property as a gift (not farmland) | Yes, from a relative | 24(b) |
| Inherit any property, including farmland | Yes | 24(c) |
| Sell or gift farmland | Only to a person resident in India | 24(d) |
| Sell or gift other property | To a resident, NRI or OCI | 24(e) |
A foreign spouse who isn't an NRI or OCI can buy one property jointly with an OCI spouse, under the conditions in Rule 25. Check those conditions with your lawyer.
Did the 2021 Supreme Court ruling change anything?
No, according to the RBI. After news reports on a Supreme Court judgment of 26 February 2021, the RBI issued a clarification on 29 December 2021. It said the judgment related to FERA 1973, which FEMA repealed, and that NRIs and OCIs don't need prior RBI approval to buy or transfer property other than farmland, farmhouses and plantations.
How do you pay?
Through banking channels into India, or from your NRE, FCNR(B) or NRO account. Traveller's cheques and foreign currency notes aren't allowed (RBI FAQ, Q2). Your choice matters later: money paid in foreign exchange is what you can send back on the property route when you sell. See our answer on repatriating sale proceeds.
Worked example 1: cash you need for a ₹90 lakh flat
Illustrative, not a project price. A flat in the Greater Bengaluru Area, with a home loan at the RBI's maximum loan-to-value of 75% (for loans above ₹75 lakh) and government charges at 7.6% of market value. Lenders won't finance stamp duty and registration when the property costs more than ₹10 lakh (RBI Master Circular).
| Amount | |
|---|---|
| Price | ₹90,00,000 |
| Loan at 75% | ₹67,50,000 |
| Down payment (25%) | ₹22,50,000 |
| Stamp duty, cess, surcharge and registration (7.6%) | ₹6,84,000 |
| Cash from you | ₹29,34,000 |
Add a power of attorney if you won't be in Bengaluru to register. The full breakdown of charges is in our full-cost guide.
Worked example 2: what the loan costs each month
Banks, NBFCs and housing finance companies can lend to OCIs for a home in India under the FEMA (Borrowing and Lending) Regulations 2018. At an illustrative 8.5% over 20 years, the EMI is about ₹867.82 per lakh.
- ₹67.5 lakh × ₹867.82 = ₹58,578 a month
- At an illustrative ₹88 to the US dollar, that's about USD 666 a month
If you pay EMIs from abroad or your NRE account, keep the statements: they can count towards what you repatriate later. Our home loan questions help you compare lenders.
The CARD check (our framework)
- Category. Is it a flat, house, plot or commercial property, and definitely not farmland, a farmhouse or plantation? Check the land records.
- Account. Will you pay by remittance, NRE or FCNR(B) (repatriable) or NRO?
- Relatives. Receiving a gift? It must come from a relative, and it can't be farmland.
- Documents. OCI card, passport, PAN, and a properly stamped power of attorney if you're abroad.
Checklist before you buy
- Land use confirmed as non-agricultural (conversion order on file)
- Payment route chosen and recorded for later repatriation
- OCI card, passport and PAN ready, with matching names
- Power of attorney drafted and stamped in Karnataka in time
- Loan sanction from a lender that lends to OCIs
- Title and approval checks done (see our legal checks guide)
- TDS question answered: is the seller resident or not?
The steps after you've found the flat are in our buying process guide, and what to do after registration is in the first 90 days.
Related reading on this site: how much of a sale an NRI can repatriate, buying from the US with a power of attorney, and documents for an inherited flat.
Legal note: this page is general information, not legal advice. Have a property lawyer check FEMA compliance, title and your power of attorney.
Frequently asked questions
Do OCI cardholders need RBI permission to buy a flat?
No. Under Rule 24 of the FEMA Non-Debt Instruments Rules 2019, OCIs can buy residential and commercial property without RBI approval. The RBI confirmed this in a December 2021 clarification.
Can an OCI buy agricultural land in Karnataka?
No. OCIs can't buy agricultural land, farmhouses or plantations. They can inherit them, and can sell or gift them only to a person resident in India.
How many properties can an OCI buy?
There's no limit on the number under FEMA. Repatriating sale proceeds on the property route is limited to two residential properties, so plan which ones you fund in foreign exchange.
Can an OCI get a home loan in India?
Yes. FEMA's Borrowing and Lending Regulations let banks, NBFCs and housing finance companies lend to OCIs for a home, with RBI's usual loan-to-value caps. Each lender sets its own documents.
Can my foreign spouse buy with me?
A spouse who isn't an NRI or OCI can buy one property jointly with an NRI or OCI spouse, subject to the conditions in Rule 25. Check them with a lawyer before you book.
What is the CARD check?
It's our four-point check for OCI buyers: confirm the property category, choose the payment account, check the relatives rule for gifts, and get your documents ready.
Talk it through with acre&key
If you're buying from abroad on an OCI card, we can help you plan the payment route and paperwork before you commit. Book a consultation with acre&key.
CA note: This is general information, not tax advice. Confirm stamp duty, TDS and the loan figures with a chartered accountant.
Lawyer note: this page is general information, not legal advice. Have a property lawyer check FEMA compliance, title and your power of attorney.
References
Checked 19 Oct 2026.
- RBI, FAQs on acquisition of immovable property by NRIs/OCIs (NDI Rules r.24, r.25): https://www.rbi.org.in/commonperson/English/scripts/FAQs.aspx?Id=1855
- RBI press release, clarification on property acquisition by OCIs, 29 Dec 2021: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52995
- RBI, FEMA (Borrowing and Lending) Regulations 2018, amended to 16 Feb 2026: https://rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=11441
- RBI Master Circular on Housing Finance, 1 Apr 2025: https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=12824