The Government of INDIA, Ministry Of Home Affairs launched a comprehensive scheme for the persons of Indian Origin - called 'PIO' Card Scheme on 30th March, 1999.  Under this scheme persons of Indian origin up to the fourth generation (great grand parents settled through out the world except citizens of Pakistan, Bangladesh, Afghanistan and other countries as may be specified by the Central government from time to time), would be eligible.  The Card would be issued to eligible applicants through concerned Indian Embassies/High Commissions/Consulates and for those staying in India on long term visa (more than one year),  the concerned Foreigners Regional Registration Officers (Delhi, Mumbai, Calcutta and Chennai) would do the same.  The salient points of PIO card are as follows:

i)        The fee for card which will have validity of 20 years would be US$1000/- (US$250/- non-refundable processing fee & US$750/- fee for the card).

            ii)          PIO Card holder shall not require a visa to visit India

iii)      PIO Card holder is exempted from the requirement of registration if his stay in India does not exceed 180 days.

iv)      In the event of continuous stay in India of the PIO Card holder exceeding 180 days, he/she shall have to get himself/herself registered within 30 days of the expiry of 180 days with the concerned Foreigners Registration Officer at District Headquarters.

v)       A PIO Card holder shall enjoy parity with NRIs in respect of all facilities available to the latter in the economic, financial and educational fields except in matter relating to the acquisition of agircultural/plantation properties.  These facilities will include

a) acquisition holding transfer and disposal of immovable properties in India except of agricultural/plantation properties;

b) Admission of children in educational institutions in India under the general category quota for NRIs - including medical engineering colleges, IITs IIMs etc.

c) Various housing schemes of Life Insurance Corporation of India, state Governments and other Government agencies;

vi)      All future benefits that would be extended to NRIs would also be available to the PIO Card holders;

            vii)          However, they shall not enjoy political rights in India.

2.       The Reserve Bank of India has simplified facilities for financial transactions by NRIs/PIOs.  The changes are;

A)      In order to simplify the procedures and to provide greater freedom to NRIs/PIOs for putting through financial transactions in India it has been decided to permit them to open bank accounts in India which will be at par with rupee accounts maintained by residents.  They will now be permitted to open Non-Resident (Special) Rupee Account with banks in India which will have the same facilities and restrictions as are applicable to rupee accounts maintained in India by residents in regard to repatriation of funds held in these accounts and/or income/interest earned on them.  The procedure for opening such accounts will be the same as in the case of domestic accounts of resident individuals.  This scheme took effect from April 15, 1999.

          B)          RBI has also granted general permission to:

i)        The resident individuals, partnership/proprietorship concerns to avail of interest bearing rupee loans from NRIs/PIOs out of funds remitted by them from abroad or out of funds held in their bank accounts in India, on non-repatriation basis, subject to certain conditions one of them being that the rate of interest on such loans should not exceed Bank Rate plus to percentage points.

ii)       NRIs/PIOs to transfer by way of gift shares held by them in Indian companies and to PIOs to transfer by way of gift immovable property held by them in India to registered charitable trusts/organisations subject to compliance with other applicable rules/regulations including the provisions of Foreign Contribution Regulation Act, 1976 by the charitable trust/organisation concerned.

iii)      NRIs/OCBs for investment on repatriation basis in Air taxi operations subject to, among other conditions, that the approval of the Director general of civil aviation has been obtained.

iv)      All domestic public/private sector mutual funds for issue of Units to NRIs/PIOs/OCBs on both repatriation as well as non-repatriation basis.

v)       NRIs/PIOs/OCBs to place deposits with Indian firms, on non-repatriation basis and with Indian companies including non-banking financial companies on both repatriation and non-repatriation basis.      

vi)      NRIs/PIOs/OCBs for sale of shares acquired under direct investment scheme on stock exchange in India.

         C)      The Reserve Bank will grant general permission to NRIs/PIOs/OCBs to invest in Government Securities and treasury bills while granting permission for investment in shares and debentures under the portfolio scheme.

          Taking into account the facilities that are already available, and the above new measures, NRIs/PIOs/OCBs will not have to seek specific permission of the Reserve Bank for whole variety of approved financial/investment transactions.  This should considerably reduce paper work and time taken for undertaking such transactions.

          Thus the facilities in economic field available to NRIs/PIOs/OCBs will be the same as available to domestic residents, except investment in real estate/agriculture and plantation business.