Expert Take: All your questions about the recent OCI changes, answered. (2024)

The Indian Government in March 2021 issued a circular delineating the privileges afforded to Overseas Citizens of India (OCI) cardholders in India. The new circular consolidates the older notifications and circulars issued by the Government of India.

An important modification introduced by the March 2021 circular changes the reporting obligations of OCI cardholders in India. They now have to report changes in their residential address and changes in occupation.

Another noteworthy change was introduced a couple of years ago and it requires OCI cardholders to procure a special permit to undertake Tabligh activities. The older circulars and notifications indicated that OCI card holders must obtain special permits to conduct “missionary, journalist or mountaineering activities,” but did not specify any particular group.

OCI Card holders seeking an internship or employment with offices of foreign nations in India also need to procure a special permit. This is a new requirement under the March 2021 notification.

Does an OCI Cardholder need a visa to visit India?
OCI cardholders do not need a visa to visit, live or work in India.

Do they need any advance permission or clearance to visit India?

OCI card holders need to obtain a special permit to undertake:

  • Research related activities;
  • Missionary, Journalistic, Tabligh or Mountaineering activities;
  • An internship in any foreign Diplomatic Missions or foreign Government organisations in India or to take up employment in any foreign Diplomatic Missions in India; or
  • A visit any area in India that is notified as protected, restricted or prohibited.

Who is eligible to qualify for registration as an OCI?

Broadly speaking the following individuals qualify for registration as an OCI:

  • A person who at any time held an Indian passport;
  • A person whose either parent or grandparent or great grandparent was born in and was a permanent resident of India, provided neither was at any time a citizen of Pakistan or Bangladesh or any other country that may be specified by the Government from time to time;
  • A person who was a citizen of India or was eligible to become a citizen on or at any time after 26.01.1950 or
  • Any person who, or whose parents or grand-parents were born in India as defined in the Government of India Act, 1935 (as originally enacted), and who was ordinarily residing in any country outside India was eligible to become citizen of India on 26.01.1950
  • A minor child whose both parents are citizens of India or one of the parents is a citizen of India; or
  • A person of foreign origin who is a spouse of a citizen of India/OCI cardholder and whose marriage has been registered and subsisted for a minimum period of two years.

The OCI program is not for individuals who are of Pakistani or Bangladeshi descent.

There was a Person of Indian Origin or PIO Scheme that was withdrawn in 2015. What happens to those individuals who were registered as PIOs?
On January 9, 2015 the Government of India issued a notification regarding the merger of the Persons of Indian Origin and Overseas Citizens of India Schemes. It stated that all existing PIO card holders registered under the new PIO card scheme of 2002 are expected to apply for an OCI card.

What is the deadline to convert the PIO Card into an OCI Card?

The deadline for the conversion of PIO cards has been extended several times since the merger of the two schemes to give more time to PIO card holders to submit their applications for registration as an OCI card holder. Most recently, the Indian Consulates abroad have issued press releases extending the deadline until December 31, 202, for PIO cardholders to convert their PIO cards to OCI cards.

Does an OCI Cardholder need to register with the Foreigners Regional Registration Office/ Foreigners Registration Office upon arrival in India?
OCI cardholders are exempt from registration with the Foreigners Regional Registration Office (FRRO) or Foreigners Registration Office (FRO) for any length of stay in India. GPK Comments: Yes, covered in Notification issued by Ministry of Home Affairs dated 4th March, 2021.

Are there any reporting requirements for OCI card holders?
OCI card holders must inform the FRRO or FRO of relevant jurisdiction via email when their residential address changes or if there are any changes to their occupation.

Are OCI Cardholders permitted to vote in India?
OCI cardholders are neither permitted to vote, nor are they eligible to run for public office nor hold government jobs in India, among a few other things. A detailed list of prohibited activities is provided under section 7 of the Indian Citizenship Act, 1955 as amended from time to time.

Does an OCI Cardholder lose his OCI status when divorced from an Indian national?
Yes. A foreign national who is registered as an OCI by virtue of his or her marriage with an Indian national/person of Indian origin loses the OCI status after a divorce. Such foreign nationals must surrender their OCI cards after the dissolution of marriage.

Are OCI Cardholders permitted to purchase agricultural land in India?
No. While OCI Cardholders are permitted to purchase immovable property in India, they are not permitted to purchase agricultural land or a farmhouse or plantation property. They are on parity with NRIs in this matter.

As per the Foreign Exchange Management Act, 1999 - Master Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian Origin, a Non-Resident Indian (NRI) is a citizen of India resident outside India.

Acquisition of immovable property by foreign nationals is now covered under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.

Who is a non-resident Indian under the Income Tax Act, 1961?
The status of a person as a resident or non-resident depends on his period of stay in India.

The period of stay is counted in number of days for each financial year beginning from 1st April to 31st March (known as previous year under the Income-tax Act). There are various ways in which a person is deemed to be a resident in India under this statute.

Further, date of arrival and date of departure is considered as one day each in India.

The Income Tax Act does defines the term non-resident as person who is not a resident and Section 6 of the statute contains detailed criteria of who is considered as Resident in India and provides that anyone who doesn’t meet these criteria is Non-Resident.

Are OCI Cardholders permitted to sit for entrance examinations into institutes of higher education?
OCI cardholders are treated on par with Non-Resident Indians and are permitted to sit for All India entrance examinations or tests for admission into institutes of higher education. They may also be considered for any supernumerary seat. However, OCI cardholders will not be eligible for seats reserved exclusively for Indian citizens nor be eligible for selection processes reserved for Indian nationals.

Does an OCI Cardholder need to re-issue his OCI Card every time he renews his passport?
An OCI Card must be reissued each time a new passport is issued for an individual up to the completion of 20 years of age and once upon completing 50 years of age. Re-issuance is not required between the ages 21-50.

Are OCI Cardholders permitted to make investments in financial instruments in India?
An OCI card holder may, on repatriation basis, purchase or sell equity instruments of a listed Indian company and other securities in the manner and subject to the terms and conditions prescribed in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and Foreign Exchange Management (Debt Instruments) Regulations, 2019.

An OCI card holder may, on non-repatriation basis, purchase or sell equity instruments of an Indian company or other securities or contribute to the capital of a limited liability partnership or a firm or proprietary concern, in the manner and subject to the terms and conditions specified in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and Foreign Exchange Management (Debt Instruments) Regulations, 2019

An OCI Cardholder may also:

  • Purchase or sell units of domestic mutual funds (on both repatriation and non- repatriation basis)
  • Government dated securities (other than bearer securities), treasury bills (on both repatriation and non-repatriation basis)
  • Purchase or sell shares in public sector enterprises being disinvested by the Central Government/Bonds issued by Infrastructure Debt Funds or PSUs in India;(repatriation basis)
  • Subscribe to National Pension System, provided eligible to invest as per PFRDA Act(repatriation basis)
  • National Plan/Savings Certificate (non-repatriation basis)

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

Expert Take: All your questions about the recent OCI changes, answered. (2024)

FAQs

What is the latest updated news about OCI card? ›

Good News: India Extends OCI Card Reissuance Deadline and Other Relaxations through December 2022. On the eve of the New Year 2022, the government of India announced the extension of the deadline for reissuance of OCI cards through December 2022 given the current emergence of COVID-19 cases.

What are the changes in OCI? ›

Restrictions on Dual Citizenship

This put OCI cardholders on an equal basis with NRIs, but without any political privileges (such as the right to vote or hold public office). The OCI cardholders' rights and privileges have been further restricted with the adoption of the OCI Notification 2021.

How do I update my OCI with a new US passport? ›

Apply under OCI Miscellaneous Service online at https://ociservices.gov.in/ Click on "Fill New Miscellaneous Application" Select option "Passport particulars updation" under “GRATIS” service. Upload photo, signature and passport document files. This entire process is done online.

Can I travel to India with old OCI and new passport? ›

Is there any minimum validity specified for my foreign passport? A: You will be allowed entry into India if you have a valid OCI Card and a valid foreign passport. You do not need to carry the old passport on which your "U” (OCI) Visa was stamped, if that happens to be different from your current passport.

Do we need to update OCI after passport renewal? ›

OCI Card Reissue Guidelines

(i) OCI cardholder is required to upload ONLINE a copy of the new passport and a recent photo (not more than 30 days old) each time a new passport is issued. The uploading of these documents may be done within three months of receipt of the new passport.

Do I need a new OCI card with a new passport? ›

As per latest MHA guidelines, The re-issuance of new OCI card will be applicable for following categories: In case of issuance of new passport (once a new passport is issued after completing 20 years of age.) In case of change of personal particulars viz. name, father's name, nationality etc.

What is the new rule for OCI? ›

OCI cardholder is required to upload ONLINE a copy of the new passport and a recent photo each time a new passport is issued up to 20 years of age and once after completing 50 years of age. The uploading of these documents may be done within three months of receipt of new passport.

How long a US citizen can stay in India with OCI? ›

US citizens can only stay in India for 180 days if they have applied for the 1 year India Visa.

Can OCI buy property in India? ›

As per the guidelines issued by Reserve Bank of India, an NRI or OCI card holder can invest in any residential or commercial property. The guidelines also state that one can buy any number of residential or commercial properties.

How long does it take to update OCI with new passport? ›

OCI Status Enquiry

Enter the passport number and File the reference number to check the status. It will take 2 to 4 weeks to get updated in the system.

Is OCI renewal required after 50 years? ›

Once you reach the age of 50, you must apply for OCI card renewal and have your visa re-issued. For those between the ages of 21 and 50, there are no mandatory requirements to get your card re-issued. Similarly, after the age of 50, it is not mandatory to renew your OCI card every time you get a new passport.

What documents do I need to upload for new OCI? ›

VFS India Consular application Centre will then return your application unprocessed.
  • Categories. For Minors/ Newborn.
  • Current Passport. Current passport copy and Birth Certificate.
  • Indian Origin Proof. ...
  • Indian Visa. ...
  • PIO Card. ...
  • Relationship Certificate. ...
  • Marriage Certificate.

Can US citizens travel to India without OCI? ›

All U.S. citizens need a valid passport as well as a valid Indian visa or an Overseas Citizen of India (OCI) card, to enter and exit India for any purpose. Travelers without valid documents or the correct type of visa may be denied entry into India.

What happens if I forgot my OCI card to travel to India? ›

While you will need to reapply for your OCI card eventually, you don't have to cancel your trip because of your misfortune. Instead of that, apply for an eTourist Visa with iVisa. This tourist visa will allow you to safely and quickly enter India and won't delay your time at the airport.

How long does it take to get OCI in USA? ›

OCI application normally takes 8-10 weeks for processing. The complete processing of OCI card involves a number of steps. The processing can be further delayed because of incomplete applications.

How long is the OCI card valid for adults? ›

The OCI card is a lifelong visa available for citizens of Indian origin. Once you get it, you will obtain all the rights any resident in India has. You can live and work in India. The OCI card is valid for 10 years after issued and it allows Multiple Entry to the country.

How do I pay my OCI fees in USA? ›

Payment can be made in cash, money order, cashier's check, or banker's check. If applying by post cash is not accepted. No personal checks are accepted. Non-US passport holders and non-USA nationals residing in the US for less than 2 years have to pay $20 additional fee as reference fee.

What to do after OCI is approved? ›

Once you have completed your OCI Application you should register with VFS Global based on how you will be applying – post/courier, or by appointment at one of our application centres, and pay your fees.

Do we need to send original birth certificate for OCI? ›

Applicant's Original US/Foreign Passport validity of minimum 6 months at the time of submission of application. Copy of US Naturalization Certificate/Or Birth certificate if born outside of USA. Recent Passport photo taken within the past 6 months, showing current appearance.

Can a US citizen apply for OCI card? ›

Foreign nationals cannot apply for OCI in India while on Tourist Visa, Missionary Visa and Mountaineering Visa. Moreover, the foreigner has to be ordinarily resident of India to be eligible to apply for OCI registration in India.

What photo is required for new OCI card? ›

The photograph should be in size 2 inch x 2 inch (51 mm x 51 mm) and in colour. Print photo on thin photo paper or stock. Ensure the print is clear and has a continuous-tone quality. Do not retouch or otherwise enhance or soften the photo.

Can I travel while new OCI is in process? ›

Yes. If you have any emergency travel plan, you can travel with your current OCI card, current passport and old passport associated with OCI.

Can NRI sell property in India without OCI card? ›

The following documents are required for NRI to sell property in India: Identity Proof: Passport, OCI card if applicable.

What is the rule of OCI after 50? ›

OCI card is required to be re-issued each time a new passport is acquired by the cardholder up to the age of 20 years. OCI card is required to be re-issued once on acquiring a new passport after completing 50 years of age.

Is Indian visa better than OCI? ›

The India Tourist eVisa is available for foreign travelers who want to visit India for tourism. On the other hand, the OCI Card allows you to live and work in India. In both cases, you must check eligibility and whether you meet the requirements.

What are the disadvantages of OCI card? ›

The OCI card benefits refer to the rights you gain, like working rights, living as a resident, and entering India as many times as you want. One of the major drawbacks is that you must surrender your Indian passport as India doesn't accept dual citizenship.

Can US citizen with OCI get Aadhar card? ›

Aadhaar card for NRIs (Non Resident Indians), OCI cardholders, LTV document holders, Nepal & Bhutan nationals as well as other resident foreigners is available free of cost and can be availed by the person by physically visiting their nearest Aadhaar Enrolment Centre in India.

Does OCI pay tax in India? ›

There is no separate procedure to be followed for filing tax returns in India as an Overseas Citizen of India card (OCI) holder. He can continue filing returns in India as a non-resident. Further, his PAN and Aadhaar are valid as an OCI.

Can OCI live in India forever? ›

What are the benefits of an OCI? Following benefits will be allowed to an OCI: (a) Multi-purpose, multiple entry, lifelong visa for visiting India. (b) Exemption from registration with local police authority for any length of stay in India.

Can OCI card holder live permanently in India? ›

Overseas Citizenship of India (OCI) is a form of permanent residency available to people of Indian origin and their spouses which allows them to live and work in India indefinitely.

Does OCI expire when passport expires? ›

OCI cardholders are permitted to enter, work and reside in India indefinitely. Previously, travelers whose OCI cards showed an expired passport number were required to travel with both their expired passport and current passport. OCI Cardholders are now allowed to travel with just their OCI card and current passport.

Can OCI card holder open bank account in India? ›

Further, an OCI can open all types of accounts allowed to a Resident customer. A joint account with Resident Indian (RI) who is a close relative can also be opened subject to following conditions: Mode of operation permitted is 'Former (NRI) or Survivor' only.

What is the grace period for OCI? ›

You will have a grace period of 30 days. You can continue to use paid resources during the grace period.

How do I check my OCI update status? ›

An applicant can check the status of his/her OCI Card application by visiting “https://ociservices.gov.in/welcome” and clicking on “Status Enquiry”. Further, the applicant can also check the status of his/her application on VFS Global portal where he/she has already registered while applying for the OCI Card.

Is India issuing OCI now? ›

In addition, the OCI Card is only valid with valid international passport. As of 2020, there are 6 million holders of OCI cards among the Indian Overseas diaspora.
...
Persons of Indian Origin Card
Issued byIndia
First issued15 September 2002
PurposeIdentification
Expiration9 January 2015 (merged with OCI)
1 more row

What are the current wait times for OCI? ›

Your OCI card processing time will be 5 to 6 weeks.

What is the current OCI processing time? ›

Your application will be sent to the embassy, and the actual card will be sent from India. This step can easily take 6-8 weeks. Once the embassy receives your OCI card, you need to provide your original passport through VFS Global center.

What is the status of OCI card? ›

In order to see the current status of your OCI application, an option would be going to the official government of India website – namely https://passport.gov.in/oci/. After accessing this page, you should follow the information provided there and pick the status inquiry alternative.

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