NRI Misplaced Nostalgia

7/25/2019 NRI Misplaced Nostalgia

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Misplaced NostalgiaHe was twenty-eight when he left India. Since he was a little kid, he always wanted to go abroad, just like

every other kid in his town.

he culture, the people, the society, and the way everybody was !! everything was di"erent, verydi"erent. he life in #alifornia was not what he had i$agined, but he adapted.

It was a big adjust$ent over the years, $any co$pro$ises at every turn. In spite of all that, he did not

co$plain $uch% after all this was his own decision & going abroad.

'll those days, all those years in '$erica, he felt ho$esick% he $issed the life he had left behind. he

childhood $e$ories, the old friends, the open (elds & he often day-drea$ed the life that used to be. 't

ti$es, he felt e$pty inside. He wished he could go back% go back to his real ho$e, his real life.

he recession ca$e% he lost his job & the high paying engineering job he had taken for granted. He looked

for another job, half-heartedly% no luck. )erhaps he was secretly wishing not to work in *S any$ore.

+May be this is a sign fro$ the od My be I belongs back ho$e & in India, he thought, he rationali/ed.+My own people, $y own culture, $y own skin tone, $y own $other tongue & that is $y place% that is

where I should be he recession $ade it easier for hi$ to decide & it was ti$e for hi$ to go back. It was

ti$e to cure his nostalgia per$anently.

0ight years older, $oustache $issing and 12 pounds heavier, he arrived in his ho$e town. he town

however was not the sa$e as he had left behind. he side-streets where he wandered ai$lessly, the

school where he learned to day-drea$, the grocery store around the corner, the peepul tree ne3t to the

pond, the pond itself!. were all gone. He could hardly recogni/e any of it. 0verything had changed. he

friends, the neighbors, the neighbors4 houses, the relatives, the relatives4 a"ection & nothing was the sa$

any$ore.

He was stranger in his own town. he traces of his old life & everything he was nostalgic about, was longgone.

Now, he was an outsider. he life and the town he had left behind had $oved on. He lived in the 5new4

town $issing the 5old4 town & the town of his youth, the town of his childhood, the town of his past. He

ca$e back fro$ '$erica for so$ething that he had $issed so dearly all those years, but it was not there

any$ore. It was not there any$ore other than in the (g$ents of his $e$ories.

6hy do N7Is return to India8Main R2I (Return-to-India) reasons for NRIs abroad

9ver the years, a reverse trend is starting to take shape. More and $ore overseas N7Is are returningho$e, and others are considering the option. he reasons for 71I & return to India & vary fro$ personal to

business to e$otional% so$e of the $ain ones are:

More job opportunities in a booming Indian economy:'s Indian econo$y keeps on growing, year

after year% there are $ore opportunities available in India co$pared to old days. he I (eld continues to

e3pand, creating de$and for international professionals. he econo$ic revolution that started in ;


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Slow down in merica and ot!er de"eloped countries:he global $arkets are going through so$e

of the worse econo$ic recessions of all ti$es. he une$ploy$ent in *S' is at its highest in $any decade

he bleak outlook in job $arkets and uncertain future abroad is one of the reasons for $any i$$igrants

consider returning ho$e.

#oing bac$ %&ome':he sense of belonging $akes a big di"erence when deciding on the future path. It

feels good to be back and going back to the roots - being a part of our own culture, our own society is a$ajor psychological boost.

amily reasons:Many go back to India for fa$ily reasons. his could be to take care of the elders who

need support in the old age, or taking care of the fa$ily property etc. Most of the N7Is have so$e

$e$bers of fa$ily in India & a bond that always has its pull.

Starting a business or roperty in"estment:Many N7Is like to invest in properties back ho$e, or the

start their own business. If the business or the invest$ent succeeds, $any prefer to spend $ore ti$e in

India than abroad, or ulti$ately settle back ho$e.

inancial reedom:he $oney situation is often the $ain instru$ent in deciding the future path. Many

N7Is, who have saved=invested enough and no longer feel the (nancial burden of day-to-day life, prefer t

go back and enjoy the (nancial freedo$. he convenience of N7I >ank 'ccounts is adds to the attraction

*!arity or educational wor$:'s a part of 5giving back4 to the $other land, $any N7Is seriously conside

going back to help out in one way or another. ?oing charity work, working for N9, educating and helpin

the poor neighborhoods, contributing to developing Indian infrastructure with the knowledge gained

abroad are so$e of the $eans toward this noble goal. he brain drain is being paid back with brain gain.

+arly +ducation and Indian language e,posure for t!e $ids:Many desi parents (nd it i$portant to

e3pose their kids to the Indian language and the best way to achieve this is by living in an Indian society.

@uite a few N7Is feel a co$pelling need, at least te$porarily, to return to India with their kids to raise

the$ in Indian culture, speaking $other tongue.

Manmo!an Sing! is calling:he )ri$e Minister Man$ohan Singh is welco$ing the overseas Indians wiopen 'r$s. ?uring his recent visit to '$erica, he a $ade a public call to all N7Is, +Aet $e take this

opportunity to e3tend an invitation to all Indian '$ericans and non-resident Indians who wish to return

ho$e to India in one capacity or another. his is certainly creating a $ore friendly at$osphere for N7Is

returning ho$e.

ood and festi"als:Not a single best reason in itself to pack up and head ho$e just because one $isse

road-side stalls of authentic food, ?iwali or other festivals, but it is certainly a bonus & one $ore reason to

consider while thinking of returning ho$e.

Nostalgia &ome sweet !ome:So$e ti$es the e$otional ties and past $e$ories $ake a big

di"erence when deciding on where to live & ho$e or abroad. he nostalgia certainly has its pull, even

though the past is long gone and it is not the sa$e any$ore as when we were little kids & not even backho$e.

' journey that started at ho$e long ti$e ago, $akes sense to end at ho$e & sooner or late


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he N7I dile$$a: his country or thatho$e8 c!oice between comfort of o"erseas and !ome country

No matter under what circumstances you leave it, home does not cease to be home. No matter how you

lived there-well or poorly. B Coseph >rodsky

Non 7esident Indians DN7IsE, the e3patriates fro$ India are scattered all over the globe. hey are living a

prosperous life, at least so it see$s. hese N7Is are happily settled in these adopted countries, but often

freFuent their ho$eland & India, to visit their friends, fa$ilies and the $e$ories they have left behind. In

$ost of the cases, the N7Is are citi/ens or per$anent residents of these countries% however, they conside

India as their true ho$e.

Most of these overseas Indians or N7Is are well settled in the new country. he new culture, the new life

and the new co$forts have created a strong bond to the new land. Majority of these N7Is help their loved

ones to $igrate as well% so the whole fa$ily unit ends up living abroad.

0ven though the ties with the past re$ain% the fa$ily, & especially the younger generation - has a strong

attach$ent to the 6estern lifestyle. his is the natural inGuence of local culture and social settings% the

natural e"ect of the long ter$ e3posure to the western society.

here is no doubt, the foreign countries have a lot to o"er in ter$s of day-to-day facilities. he health-car

syste$, for e3a$ple, is $uch $ore advanced and o"ers a piece of $ind for any fa$ily. he schooling and

education syste$ is a$ong $any of such bene(ts. he daily co$forts, jobs opportunities and infra-

structure of a developed country create a far better living e3perience, in spite of so$e keysocial hurdles for

immigrants.

No $atter how successful one beco$es and how $uch adjusted we are to the adopted country, the

craving for the ho$eland is always there. he attach$ent to our own culture and $e$ories fro$ past

continue to $aintain a bond too strong to ignore or overlook. 'fter all, it is hu$an nature to drea$. 6e

drea$ of better future, but at the sa$e ti$e, we recall the fond memories from past and our childhood. he

nostalgia of yester-years, -the social and cultural e3periences growing up in India- is always there. So$e

us want to go back because there are loved one and friends back ho$e% others want to go back to re-live

their past, to trace their $e$ories.

his is a real dile$$a for a large nu$ber N7I fa$ily & to stick to the adopted ho$e abroad or go back to

India. he younger Indians '$ericans for e3a$ple, who are raised in '$erica, have fully adapted to the

'$erican culture. hey don4t have the sa$e e$otional ties with India. 9n the other hand, the (rst

generation i$$igrants have $uch stronger feelings for their ho$eland, but end up staying abroad for the

econo$ic or fa$ily reasons.

It is a tough decision & to choose between the ho$eland based on personal nostalgia and cultural roots, o

the place that provides the present co$fort and livelihood. No doubt that there are challenges as a

foreigner but trade-o" see$s to be worth the hassle, as everybody ends up staying.

>y end of the day, the adopted country is winning the battle% nobody see$s to go back to India, at least not

per$anently.
http://www.theindiansabroad.com/2009/04/a-newcomer-in-a-new-land/http://www.theindiansabroad.com/2009/04/a-newcomer-in-a-new-land/http://www.theindiansabroad.com/2009/04/a-newcomer-in-a-new-land/http://www.theindiansabroad.com/2009/09/the-summer-memories/http://www.theindiansabroad.com/2009/05/paradigm-of-a-promise/http://www.theindiansabroad.com/2009/09/the-summer-memories/http://www.theindiansabroad.com/2009/05/paradigm-of-a-promise/http://www.theindiansabroad.com/2009/04/a-newcomer-in-a-new-land/http://www.theindiansabroad.com/2009/04/a-newcomer-in-a-new-land/


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N7Is and the duplicity of lifeIn India, N7Is & non resident Indians, are always looked up to% N7Is are often envied for their prosperity an

the riches. N7Is hold a special status in all walks of Indian life. hey are well recogni/ed for their deep

pockets. here is no debate that $ost of the N7Is are considered very successful a$ong Indian society,

regardless how they $ake their living in the foreign land.

'nd how are the N7Is and Indians perceived in the foreign land8 6hat is their social status in the county

they live in8 6ell, e3actly the opposite in $any cases. here are no stories of special stature to write ho$

about. or e3a$ple, in the '$erican society, you can (nd lots of successful N7Is, lots of $iddle class

Indians who are well settled, but there is nothing to envy about their social standings, at least not in the

adopted country. hey are just a part of another $inority group.

or e3a$ple, consider the cases of successful N7Is who have professionally established the$selves in the

foreign countries & in 0urope or '$erica or any other developed country. here are lots of Indian doctors

and engineers, and they are good ones too. hey $ake a good living, they enjoy $iddle class or upper

$iddle class life in $ost cases% $any have big houses and all the other a$enities. However, there is no

special stature for this successful group of people. If anything, it is Fuite the opposite & the locals considethe$ outsiders in $any cases. hese well behaved and well educated Indians are so$eti$es, Dand $ore

often lately due to rising une$ploy$ent,E considered the cause of higher une$ploy$ent, and often

bla$ed for stealing jobs for$ the locals. 6e are talking about doctors and engineers. he Situation is eve

worse for those who $ake their living by driving ta3ies or doing other average jobs.

So what is the point8 he point is that N7Is often have a co$plete role reversal in their adopted countries

co$pared to back ho$e in India. *nlike everyone looking up to the$ in India, they are often looked down

in the land abroad.

If you think about it, the N7Is, especially the (rst generation N7Is, sacri(ce a lot to succeed in the foreign

country, including their pride, social stature and their social identity. hey have to re-adjust to the role of

$inority, they often have to adapt to the rules and custo$s of the new land and that is just the beginninghe hurdles and challenges abroad that a new co$er faces are too $any, and are discussed in detail in a

separate article linked below. 9ver ti$e, the N7Is often lose their language% their own way of life is

co$pro$ised and they end up adapting to the foreign life-style. he whole adaptation happens so slowly

over the years, that N7Is don4t even reali/e the slow change in $any cases, the slow changes over the

decades of life abroad.

Aife is a funny thing. It always looks di"erent when you look back at the past, versus looking at the

present. )erhaps going abroad was the right decision at that ti$e. )erhaps, $any of us did not have any

better choice when we (rst left the ho$eland, long ti$e ago. 9r perhaps, $ost of us never thought that

we were leaving our country for good. 6hen we (rst start the journey, $ost of us $ay have never reali/e

that we are per$anently leaving behind so $uch. 6hen we (rst go abroad, we all $ake a self-pro$ise toreturn ho$e, and yet rarely keep the pro$ise.

So, there is not a whole lot to envy about N7Is. or so$e $onetary gains, for a drea$ of prosperity and

better life, $ost of the N7Is have lost a lot, $any have sacri(ced too $uch. he sad part & $ost of us don

even reali/e it, don4t even think about it. 'll along, over the years, so$ething called 5life4 happens & a new

life with new friends, with new fa$ily and in the new society in the new land.


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9verseas perceptions about people fro$India./ o"erseas perceptions about Indians

People only see what they are prepared to see.B7alph 6aldo 0$erson

It is a hu$an nature -we judge a book by the cover% we generally have an opinion about so$ething or

so$eone as soon as we see the$. Most of these opinions and judg$ents are based on our preconceived

notions resulting fro$ the (rst i$pressions. hese perceptions are often based our own 5assu$ption4 and

opinion about so$eone or so$ething, that $ay or $ay not be true.

So, what kinds of perceptions and preconceived notions they have about people fro$ India in other

courtiers8

Here are so$e of the overseas perceptions about Indians:

.0 1uiet intro"ert reser"ed:he people fro$ India are considered to be reserved and a little shy% the

are perceived to be a bit isolated fro$ other co$$unities, $inding their own business. his perception is

true to so$e e3tent, especially for the (rst generation of i$$igrants who tend to focus on their own lives

and their own occupations. Many ti$es, their sociali/ing is li$ited to a circle of Indian friends and fa$ilies

or acFuaintances fro$ e$ples=urudwara gatherings etc. he tendency to isolate fro$ 6estern or

'$erican society is not unco$$on. his $ay be the fear of 5unknowns4 in so$e cases, and the hu$an

nature of 5birds of a Gock..4 in others.

20 &ardwor$ing:he perception that Indians are hard-working is true in $ost cases. 'n i$$igrant

generally tend to work $uch harder to succeed in a foreign land, especially for the (rst generation folks

who have language barrierand are new to the '$erican culture. hey have to deal with so many new challenges

and hard work is the way around.

30 rugal:Not sure how true this one is, this $ay a generational thing again, but Indians are assu$ed to

be frugal. However, the older generation of 6esterns is also frugal when it co$es to spending. his could

be due to their personal e3periences of econo$ic ups and downs. he Indians are often known for

searching for best deals, and they always tend to drive a hard bargain.

40 #ood wor$ et!ics:)eople fro$ India are generally considered to have good work ethics. hey work hard

and follow the rules. 't least that is what the co$$on perception is at work places and a$ong the

'$erican society.

50 6ell educated:he Indians are perceived to have good education. his probably boils down to the fa

that so $any Indians are in highly skilled trades now-a-days. 'lso, the Indian parents tend to stress $uch

$ore on education and its i$portance in life. his perception $ay also be due to the fact that overseas4

technical and $edical (elds are full of Indians.

70 Not t!e leaders!ip type:his is a co$$on thinking at $any work-places abroad, though nobody wi

say this to your face. 6hile there are lots of Indians in higher $anage$ent positions at bigger co$panies

the perception e3ists. he notion of being reserved and 5$inding their won business4 does play a role into

this.
http://www.theindiansabroad.com/2009/09/crossing-the-language-barrier-abroad/http://www.theindiansabroad.com/2009/04/a-newcomer-in-a-new-land/http://www.theindiansabroad.com/2009/05/the-key-to-success-hard-work-and-frugality/http://www.theindiansabroad.com/2009/09/crossing-the-language-barrier-abroad/http://www.theindiansabroad.com/2009/04/a-newcomer-in-a-new-land/http://www.theindiansabroad.com/2009/05/the-key-to-success-hard-work-and-frugality/


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80 9egetarian:andhi, the $ost fa$ous Indian known abroad, was vegetarian% $any Indian restaurants

have vegetarian section in the $enu. he westerns often assu$e that vegetarian life-style is the

$ainstrea$ and preferred way for Indians.

0 ;eetotaler:Not sure where this one ca$e fro$. o the contrary, the Indian parties and weddings have

$ore alcohol than any other parties abroad. Many of the 0nglish or '$erican weddings have a bar for the

drinks where you have to pay for the alcoholic drinks, unlike Indian parties with 5open4 bar where alcohol e3pected and served freely.

rain drain4 is co$$on a$ong developing countries, India is no e3ception. oung, a$bitious and

educated class of society leaving ho$eland and heading abroad, searching for a better future, a better

to$orrow.

or decades, the woes of brain drain fro$ India to the developed countries have been bla$ed on $any

proble$s at ho$e, including education syste$ and the job opportunities. )atriotis$ and loyalty to the

$other-land is often Fuoted as the lacking character a$ong the youths settled abroad, who turn their bac

on the country that raised the$, provided for the$ and educated the$.

In spite of all this so called 5brain drain4 for so long, however, there is no shortage of brain in India. the

country is e$erging as a fast developing nation, with ?) growth rate that western countries can only

i$agine Dand ad$ire fro$ a distanceE. 'ctually there has to be so$e e3tra 5brain power4 in India that isleading a populous country with ;.; billion heads on a path of inventions, $oderni/ation and prosperity.

0very good thing $ust co$es to and end, or slow down. 6ith recession and high une$ploy$ent in

'$erica & and rest of the developed world & $any Indians living overseas are considering going back

ho$e. So$e of the key incentives to stay abroad & job security and (nancial opportunities & have faded

over the years. housands of N7Is & frustrated with the gri$ job outlook, & have packed up their '$erica

luggage and headed ho$e for good. Many $ore are e3pected to follow the suit.
http://www.theindiansabroad.com/2010/01/beliefs-misconceptions-world-abroad/http://www.theindiansabroad.com/2009/08/common-myths-misconceptions-india/http://www.theindiansabroad.com/2009/05/brown-vs-brown/http://www.theindiansabroad.com/2010/01/beliefs-misconceptions-world-abroad/http://www.theindiansabroad.com/2009/08/common-myths-misconceptions-india/http://www.theindiansabroad.com/2009/05/brown-vs-brown/


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he N7Is all over the world are very aware of the prosperity and bright prospects of India. So$e daydrea

of returning ho$e in the near future% others are (nding a way to collaborate with ho$eland on new

opportunities.

he $igrants settled abroad & the 5brain drain4 of yester years & are contributing re$otely to the growth o

India in so $any ways. or e3a$ple, successful Indians in the high-tech industry in *S often set-up

hardware or software co$panies Dor oJcesE in India. ro$ a far-away land, $any $ore have found ways tpayback to their ho$eland. I$port-e3port, outsourcing, call-centers and collaboration with Indian

colleagues are so$e of the co$$on paths leading back ho$e.

So, brain drain is not all that bad% it is not a per$anent loss at least. In fact, developed countries are

source of valuable e3perience, good education and new ideas that N7Is can acFuire and then use those

skill-sets to co$pli$ent the needs in India. Indian business $odels, day to day life, and the way of thinkin

& everything carries a signi(cant 6estern inGuence. he Indian-'$ericans and rest of the N7Is can $ake

$ajor contribution by building a bridge of ideas% by sharing their knowledge with Indian counterparts.

?uring his visit to *S' in Nove$ber, )ri$e Minister Man$ohan singh used the ter$ +brain gain instead o

+reverse brain drain. He thanked the Indian-'$erican co$$unity for their contribution in building bridge

between India and the *nited States and invited Indians worldwide to return ho$e. he pri$e $inisternoted that Indian-'$ericans no longer had to $ake a choice about whether to work in India or '$erica,

+Modern technology and our Ge3ible policies have opened possibilities of working in both places.

+Aet $e take this opportunity to e3tend an invitation to all Indian '$ericans and non-resident Indians wh

wish to return ho$e to India in one capacity or another, Said )ri$e Minister Man$ohan Singh.

6hat else there left to say, one way or another, & 6elco$e Ho$e

Returning to India, the NRI dilemma

July 15, 20

In a world where all actions have to be justified by hard logical reasoning, there is little room left for ambivalence

dilemma. This is especially true when it comes to NRIs wanting to return to India. The issue of whether to return h

been debated and re-debated for years and very few, if any, have really found a general compelling reason one w

or the other. This is because it is an extremely complex topic involving economical, cultural and emotional issue

y sharing my personal experience I hope to share some insights in to this complex issue. There was a time when

li!e all my friends in IIT, dreamt of going to the "tates for higher education, getting a lucrative job and eventua

living the so-called #merican dream. This was $%&&. The way to go was to apply to a university. I got in and b

#ugust '&& was ready to leave. (ery few as!ed why I was going. The reasons to go were considered perfec

rational - good education, good jobs and a good standard of living - so obvious that they were not even wor

as!ing. No dilemmas.

)i!e all first generation immigrants, I encountered the usual roadbloc!s to adjusting in a new country - financi

emotional and cultural. # meager scholarship had to be used for tuition, rent, food as well as once-a-year trip ba

home. It was hard but there were several people li!e me and somehow, we all managed to survive. #nd eventua

thrive as we all ended up with good jobs. The emotional adjustment was relatively easier as we got over the init

homesic!ness. *owever, the cultural adjustment was a much longer one and ultimately there were very few w

was truly at ease with the #merican culture. The cultural gap is far bigger than what Indians expect before the

arrive. +or example, our food habits, topics of conversation, ways of recreation were all uite different. ut the


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were all considered the usual hurdles for a first generation immigrant and therefore never uestioned

Time always seems to fly for everyone, but when living a fast-paced #merican lifestyle this clich couldn't be true

ith wor!, home, spouse and !ids with no relatives or domestic help, you tend to live +riday to +riday. #nd befor

!new it, I had already lived in #merica for over a decade. )i!e all the Indians I !new, except for very few exception

I went on to get a green card - a signal that I have finally 'settled down'. #gain, this remained largely unuestione

unchallenged. hen as!ed on rare occasions, I parroted the usual reasons/ poor career prospects and livin

standards in India. Returning was left more as a vague option - to soothe parents and elders in the family - tha

would be considered if somehow things changed dramatically. No dilemmas.

ut li!e several others, I nurtured a hidden - almost secret - desire to be able to return one day. This was !ept clo

to my heart but whenever I disclosed this to others I ended up getting really confused. hat is the rationale behi

this, some would as!. Is it to renew family ties or bring up children in an Indian culture0 Is it some vague longing f

a past that was left long behind0 1r worse, is it some far fetched ambition to serve your country and ma!e a positi

change0 The very idea was often ridiculed. *orror stories of people suffering after moving bac! were told as pro

of this fallacy. Then there were others who were more ambivalent. Their hearts longed to return but they hadn

figured out how. "ome of them planned to wor! for a few more years and then decide - maybe after completing

new degree2 maybe after saving a few more dollars2 maybe after having !ids. It was popularly !nown as the'34syndrome'. It was so confusing that I would !eep debating with myself but rarely bring it up with others

#nd yet, the desire to return seemed to grow stronger everyday. It seemed to grow in some irrational corner of m

mind which I !new could never be touched by reason. The only way to deal with it, I thought, is to experience it. "

one day, I decided to tal! to my boss about the possibility of moving to India and setting up a local branch of the 5

based company I wor!ed for. *e ignored it initially thin!ing that it was a passing phase. ut when I persisted, h

listened. I began to plan a business trip to India to assess the best location, the potential ris!s and rewards and co

of setting up an operation in India. This was 6ecember 788$. y #pril the next year I had already submitted

business plan to my 9:1 and got it approved. I had to move bac! to India by ;une 7887 on a 7-year assignmen

e had less than < wee!s to pac! and leave=

Those < wee!s were one of the most interesting moments in my life. *aving endured the '34$' syndrome for yearsfelt almost shoc!ed to have to move bac! so suddenly. 1n one hand I felt li!e sitting bac! and contemplating on t

huge change that was about to happen. #nd on the other, I had almost an endless list of things to do - closi

accounts, selling cars and furniture, ma!ing travel arrangements, getting !ids vaccinated and completing

remaining projects at wor!. #nd last but not the least, attending farewell parties. There were so many people wh

came to visit us during these few wee!s, it was unbelievable. There were a wide range of reactions - from sadnes

that we were leaving to rejoicing in the fact that we were returning to India. >any of them mentioned that I wa

really luc!y and given a similar opportunity they would do the same.

ut without exception they all as!ed the big uestion, *?. Is it because of family reasons0 1r, is it because of t

bad job situation in the "tates0 1r, is it because of "eptember $$0 It was as if the catastrophic terrorist attac

could be used to justify almost anything. Now, I was in a big dilemma. hat if I said I had no hard reasons0 hat said that I was returning to a place where I felt I belonged0 hat if I said that I was following my heart - for

change0 ould that be too vague, I thought. +inally, I decided to dodge the uestion. I told them it was a uniu

career opportunity with an option to come bac! in case things did not wor! out well. They all nodded. It was th

most rational reason I could come up with. It was best to avoid any debates at this stage, I thought. esides, I !ne

no hard reasons existed. >ay be I'll figure it out one day after settling down in India.


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acilities for 7eturning Indians 6!o is a non-resident Indian>

6!o is a person of Indian origin>

Status of non-residents on temporary "isit?stay in India

Status of @an$ accounts on return to India

Status of oreign *urrency ccounts broad

Apening of new oreign *urrency ccounts broad

oreign *urrency ccounts not co"ered under t!e general permission

cBuisition &olding and Cisposal of oreign Securities

cBuisition &olding etc of Immo"able roperty outside India

Doans against oreign *urrency

Important 1s

Miscellaneous

Opening, maintenance and operations of foreign currency accounts abroad by residents require priorapproval of the Reserve Bank. he Reserve Bank permission is also necessary for acquisition, holding an

disposal of foreign securities or immovable properties abroad by residents. his equally applies to

Returning Indians. Returning Indians are the residents abroad who have returned to India and who wish t

continue to hold their assets abroad, which were acquired by them while they were residing outside India

In the context of liberali!ation of exchange control regulations, the Reserve Bank has granted general

permission to Returning Indians and to certain other residents to continue to hold their foreign currency

assets abroad sub"ect to certain conditions. his pamphlet attempts to explain, in question#and#answer

form, current provisions regarding procedural formalities and the scope of the various exemptions grante

by the Reserve Bank on the sub"ect.

DEFINITIONS

6ho is a non-resident Indian8
http://www.welcome-nri.com/info/project/returnindia.htm#whonrihttp://www.welcome-nri.com/info/project/returnindia.htm#whoindianhttp://www.welcome-nri.com/info/project/returnindia.htm#temporaryhttp://www.welcome-nri.com/info/project/returnindia.htm#statushttp://www.welcome-nri.com/info/project/returnindia.htm#fcurrencyhttp://www.welcome-nri.com/info/project/returnindia.htm#openinghttp://www.welcome-nri.com/info/project/returnindia.htm#accountshttp://www.welcome-nri.com/info/project/returnindia.htm#acquisitionhttp://www.welcome-nri.com/info/project/returnindia.htm#acquisition12http://www.welcome-nri.com/info/project/returnindia.htm#loanshttp://www.welcome-nri.com/info/project/returnindia.htm#faqshttp://www.welcome-nri.com/info/project/returnindia.htm#miscelleneoushttp://www.welcome-nri.com/info/project/returnindia.htm#whonrihttp://www.welcome-nri.com/info/project/returnindia.htm#whoindianhttp://www.welcome-nri.com/info/project/returnindia.htm#temporaryhttp://www.welcome-nri.com/info/project/returnindia.htm#statushttp://www.welcome-nri.com/info/project/returnindia.htm#fcurrencyhttp://www.welcome-nri.com/info/project/returnindia.htm#openinghttp://www.welcome-nri.com/info/project/returnindia.htm#accountshttp://www.welcome-nri.com/info/project/returnindia.htm#acquisitionhttp://www.welcome-nri.com/info/project/returnindia.htm#acquisition12http://www.welcome-nri.com/info/project/returnindia.htm#loanshttp://www.welcome-nri.com/info/project/returnindia.htm#faqshttp://www.welcome-nri.com/info/project/returnindia.htm#miscelleneous


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$n Indian citi!en who stays abroad for employment or business or takes up a vocation outside India or

who stays abroad under circumstances indicating an intention to stay there for an uncertain period, is a

non#resident. %ersons posted in &nited 'ations organi!ations and officials deputed abroad by

(entral)state government and public sector undertakings on temporary assignments are also treated as

non#residents. 'on#resident foreign citi!ens of Indian origin are treated on par with non#resident Indian

citi!ens. Indian citi!ens who go abroad for business visit, medical treatment, study and such other

purposes which do not indicate their intention to stay outside India for an indefinite period are considered

as *persons resident in India+ during their temporary absence from India.

6ho is a person of Indian origin8

or the purpose of the facilities outlined in this pamphlet, a foreign citi!en -other than a citi!en of

%akistan or Bangladesh is deemed to be of Indian origin, if,

-i he, at any time, held an Indian passport, or

-ii /e or either of his parents or any of his grandparents was a citi!en of India by virtue of the

(onstitution of India or (iti!enship $ct, 0122 -23 of 0122.

Note4 $ spouse -not being a citi!en of %akistan or Bangladesh of a person of Indian origin is also treated

as a person of Indian origin.

Status of non-residents on te$porary visit=stay in India

'on#resident Indian citi!ens and %ersons of Indian Origin on their temporary visit) stay in India without

any intention to stay in India for an uncertain period shall continue to be treated as non#resident duringtheir stay in India. echnically it shall not be a return to India and they will continue to get all the benefits

that are available to non#residents. heir non#resident accounts)investments etc would continue without

any change and they will also not be required to surrender any foreign exchange etc.

In other cases, non#resident Indians and %ersons of Indian Origin who return to India and become

residents in India are required to comply with the regulatory provisions of 5ection 6, 1, 07, 01, 87 and 82

of 9R$. 013:.

Status of >ank accounts on return to India

Ordinary Non- Resident Accounts

Ordinary non#resident accounts will be converted to resident accounts by banks in India on return of the

account holder to India and consequently becoming resident in India.

Non-Resident (External) Rupee Accounts


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'R9 accounts will also be converted to resident rupee accounts or R( accounts -if eligible at the option

in of the account holder on the return of the account holder to India and their becoming residents in India.

In case of 'R-9 ixed ;eposit, the accounts will continue to earn agreed rate of interest till maturity

even after these being converted to resident account.

FCNR Accounts

('R accounts will be converted to resident rupee accounts or R( account -if eligible at the option of

the account holder on the return of the account holder to India and their becoming residents in India.

In case the account is converted to resident rupee account, the foreign currency amount will be converted

to Indian Rupees at buying rate ruling on the day of conversion. Interest on the new deposit would be

payable at the relevant rate applicable on such deposit. In case the amount is transferred to R( account,

the rate of interest applicable to R( account will be payable.

Status of oreign #urrency 'ccounts 'broad

'o person resident in India can open or maintain an account in foreign currency abroad without prior

approval of RBI. %ersons who having been resident outside India, on return to India and attaining status

of resident, are required are required to close their foreign currency accounts, if any maintained by them

during their stay abroad and arrange to transfer the balance therein to India within : months from the date

of their arrival in India. /owever, RBI has granted general permission to persons who have come or

returned to India after a minimum continuous stay of one year abroad as non#resident in regard to the

maintenance and operations on foreign currency accounts with banks abroad provided the funds held in

bank accounts were acquired by such persons otherwise than in contravention of provisions of 9R$,

while they were residents outside India.5uch persons, on return to India can therefore, continue to

maintain their foreign currency accounts abroad. unds held in these accounts can be used by resident

account holders for making any payments to persons outside India. here will be no restriction on

utili!ation of the balances in these accounts for any bonafide payments in foreign currency. he funds can

also be utili!ed for making further investments in shares) securities or immovable property etc. abroad

provided the cost of such investments and)or any subsequent payments are met exclusively out of foreign

currency held in these accounts.

he general permission granted by RBI also authori!es these payments to retain in foreign currency.

;. 'll inco$e, i.e., interest, dividends etc earned on foreign e3change assets i.e., bankdeposits, invest$ent in foreign currency, shares or securities or i$$ovableproperties situated outside India or invest$ent in business etc. outside India, lawfullyacFuired by such persons while resident outside India.


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1. Sale proceeds of such invest$ents received after return of account holders to India.

K. )ension received by such persons fro$ erstwhile e$ploy$ent outside India.

L. In cases of persons who have retained their links abroad through e$ploy$ent,business or vocation outside India taken up or co$$enced while they were non-resident, foreign currency continued to be acFuired through such e$ploy$ent,business or vocation outside India even after their return to India.

2. #redits to foreign currency accounts of such persons in respect of above will beper$itted.

9pening of new oreign #urrency 'ccounts 'broad

N7Is returning to India for good and covered under general per$ission $ay also open new

foreign currency accounts abroad to deposit the eligible funds in such accounts, 0ligiblefunds $ean funds covered under general per$ission granted by 7>I.

oreign #urrency 'ccounts not covered under the general per$ission

%ersons who dot satisfy the conditions under general permission granted by RBI, e.g., persons returning

to India after short assignments abroad of less than one year, will be required to close their foreign

currency accounts, if maintained by them during their stay abroad and arrange transfer of balances therein

to India within : months from the date of arrival in India. If the accounts are desired to be continued for a

slightly longer period, application in orm $; 0 must be made to RBI within : months from the date ofapplicant


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b. 6here it is held since prior to thCuly ;I was obtained.

c. 6here it is acFuired by way of gift or inheritance fro$ persons referred to in category

DaE and DbE above and covered by the e3e$ption granted by 7>I, provided in the caseof gift, the recipient donee is a relative i.e. husband, wife, brother, sister or any linealascendant or descendant of the donee and the ta3 payable thereon has been paid inIndia.

he general permission also applied to acquisition of fresh securities out of the foreign exchange held by

residents in terms of general exemption granted by RBI.

%ersons satisfying the conditions for the general permission can credit the income or sale) maturity

proceeds of such securities to their foreign currency accounts abroad and in the case of persons referred to

in category -a, the income or sale) maturity proceeds of securities can also be credited to their R(

accounts with an authori!ed dealer in India.

'on# Residents returning to India and not covered under the general permission of RBI will be required

to apply RBI for permission to hold)dispose foreign securities.

'cFuisition, Holding etc of I$$ovable )roperty outside India

;. In ter$s of Section 12 of 07', ;I to acFuire, hold, transfer or dispose of by way of sale,$ortgage, lease for a period e3ceeding (ve years, settle$ent or otherwise anyi$$ovable property situated outside India. >y Noti(cation No.- 07' ;1O= dated thSepte$ber, ;


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out of foreign exchange held by such persons in terms of general permission granted by RBI. Income on

such properties can be credited to their foreign currency accounts abroad. In the case of persons referred

to in category -a above, the income can also be credited to their R( accounts maintained with an

authori!ed dealer in India.

;. Non-resident Indians returning to India who are not covered under the generalper$ission as above should obtain per$ission of 7>I to hold i$$ovable propertyoutside India. or this purpose, application in or$ '? ; is to be $ade to 7>I withinK $onths of applicant4s arrival in India. Such persons will also be reFuired to obtainper$ission of 7>I to sell the property. )er$ission by 7>I will be granted provided 7>Iis satis(ed that the property is being sold at the best possible price and the sellerhas undertaken to repatriate sale proceeds to India through an authori/ed dealer.7einvest$ent abroad of sale proceeds of property will not be per$itted. Sale ofi$$ovable property to another resident in India is also not per$itted. ransfer ofproperty by gift, settle$ent, lease e3ceeding (ve years will also reFuire prior

per$ission of 7>I.

1. Section 12 of 07', ;


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Are any concessions a'aila$le to Returnin! Indians in respect o assets acquired $y t"e% *"ile t"ey *ere resident

outside India&

=es. %ersons who have returned to India on or after $pril 06, 0118 and have stayed abroad for a

continuous period of not less than one year have been granted general permission)exemption from the

requirement of surrendering)declaring their foreign currency assets abroad. $s a result they can continue

to maintain their foreign currency accounts and other assets, vi!., foreign currency shares)securities or

immovable properties abroad. &nder the general permission)exemption, Returning Indians can retain their

foreign currency accounts with banks abroad and hold, transfer or dispose of their foreign currency assets,

provided these funds)assets were lawfully acquired by them out of foreign exchange earned through

employment, business or vocation outside India taken up or commenced while they were resident outside

India and not in contravention of the provisions of the oreign 9xchange Regulation $ct -9R$, 013:.

Is suc" an exe%ption a'aila$le to any ot"er cate!ories&

=es. Residents who had acquired foreign currency assets abroad before >uly 6, 0173 can continue to hold

them abroad, provided they were held outside India with the general or special permission of the Reserve

Bank as on ?th >uly 0117. his general permission)exemption has also been granted by the @overnment

of India vide their 'otification dated >uly ?, 0117.

Do resident donees or le!al "eirs require t"e Reser'e +an, per%ission to recei'e or "old orei!n currency assets $y *ay

o !it or in"eritance ro% Returnin! Indians or ro% t"ose "oldin! assets since prior to uly ./ 0123 *it" t"e

per%ission o t"e Reser'e +an,&

'o. Resident donees or legal heirs of the persons covered under the general permission)exemption

granted by the @overnment of India can continue to maintain their foreign currency assets provided in thecase of gift the resident donee is a relative, i.e., husband, wife, brother, sister or any lineal ascendant or

descendant of the donor and the tax, if any, has been paid in India. Resident donees not eligible for the

exemption should surrender the foreign exchange to an authori!ed dealer against payment in rupees.

Can suc" o'erseas assets co'ered $y t"e !eneral per%ission#exe%ption $e utilied reely&

=es. he resident donees or legal heirs can freely utili!e overseas assets covered by the general

permission)exemption assets as well as income earned thereon or sale proceeds received subsequently, for

bona fide payments in foreign currency.

Can persons co'ered $y t"e !eneral per%ission#exe%ption %a,e any settle%ent or !it o any o t"eir orei!nexc"an!e#orei!n currency assets in a'our o persons resident outside India&

=es.

4"at a$out persons *"o are not co'ered $y t"e !eneral per%ission#exe%ption&

%ersons who are not covered by the general permission)exemption are required to bring the overseas

foreign currency assets to India within three months from the date of acquisition and surrender them to an


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authori!ed dealer within seven days from its receipt in India and)or obtain within three months of

owning)date of return to India specific permission of the Reserve Bank for continuing to hold those

assets.

4"at is t"e procedure or o$tainin! suc" per%ission&

$pplications for the purpose should be made in form $; 0 to the Reserve Bank of India. he forms are

available with the 9xchange (ontrol ;epartment -oreign $ccounts 5ection, $mar Building, Bombay#

7AA AA0. Returning Indians are also offered the facility of keeping their foreign currency funds with a

bank in India. his facility is known as the Resident oreign (urrency -R( $ccount 5cheme.

4"at is t"e Resident Forei!n Currency Account Sc"e%e&

his is a 5cheme drawn up by the Reserve Bank permitting Returning Indians to open foreign currency

accounts with banks in India for holding funds brought by them to India.

Is any per%ission ro% t"e Reser'e +an, required or openin! suc" accounts *it" aut"oried dealers&

'o.

In *"ic" currencies can RFC accounts $e %aintained&

R( accounts can be maintained in any convertible currency.

4"at unds can $e credited to RFC accounts o Returnin! Indians&

he Returning Indians can credit to R( accounts, the entire amount of foreign exchange brought to

India at the time of their return to India for permanent settlement as well as the balances standing to the

credit of their 'ot Resident -9xternal -'R9 and oreign (urrency 'on#Resident -('R accounts.

Can inco%e recei'ed ro% t"eir o'erseas assets in t"e or% o di'idends/ etc/ or sale proceeds o suc" assets $e credited

to RFC accounts&

=es.

Can pension recei'ed $y t"e account "older ro% a$road $e credited to "is RFC account&

=es.

Non-resident Indians (NRIs) returnin! to India or per%anent settle%ent *ere !ranted (RIFEE) acility Is t"is acility

still a'aila$le &

'o. RI99 facility has been replaced by the R( accounts facility.

Can unds in RFC accounts $e re%itted a$road&

=es. unds in R( accounts can be remitted abroad for any bonafide purpose of the account holder or his

dependents.


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Can unds in RFC accounts $e utilied or local pay%ents&

=es. unds in R( accounts can be withdrawn freely for local payments in rupees.

Can RFC account "olders ta,e loan a!ainst t"e RFC $alances&

'o.

Can a Returnin! Indian desirin! to !o a$road a!ain or e%ploy%ent/ $usiness or 'ocation transer unds ro% RFC

account to NRE#FCNR account&

=es.

Can persons *"o "a'e returned to India ater a s"ort assi!n%ent o less t"an one-year open RFC accounts&

heir applications for opening R( accounts would be considered by the Reserve Bank. %ersons who

have gone abroad for studies, training, etc., are, however, not eligible for this facility.Can Returnin! Indians

continue to %aintain t"eir existin! NRE#FCNR#NRO accounts in India&'o. Returning Indians are required to

redesignate immediately on their return to India their 'R9)('R accounts as resident rupee accounts or

transfer the balances held in their 'R9)('R accounts to Resident oreign (urrency -R( $ccounts -if

eligible. he 'on Resident -Ordinary -'RO accounts also have to be redesignated as resident rupee

accounts. he funds held in 'RO accounts can not be credited to R( accounts.


18/20

Is any tax concessions a'aila$le to NRIs on $alances#deposits "eld in NRE#FCNR accounts &

=es. Income from interest on moneys standing to the credit of 'R9)('R accounts is exempt from

income tax. @ifts from such accounts are also free of @ift#tax.

Are si%ilar concessions a'aila$le in respect o $alances "eld in NRO accounts&

'o.

4"at are t"e tax $eneits to t"e NRNR deposit account "olders&

hey en"oy the following tax benefits 4

i Income from the deposits will be free from Indian Income ax.

ii he deposit will also be exempt from @ift ax for one#time gifting -in the case of 'RIs only.

iii 9xemption from Income#ax will not be available to resident donee and those residents, who being"oint holders, become owners of the deposit as survivor of the non#resident depositor.

4"at a$out tax $eneits on unds "eld in FCNR accounts&

ax 9xemption on interest earned on deposit held in foreign currency is available to non#residents and

persons who are not ordinarily resident in India as defined under Income ax $ct, 01?0.

4"at is t"e appro'ed %et"od o sendin! re%ittances into India&

he approved method of sending remittances into India is through normal banking channels.

At *"at rates are re%ittances in orei!n currencies %ade $y NRIs con'erted $y $an,s into rupees&

5uch remittances will be converted by banks at the market rate of exchange.

Can re%ittances $e sent into India ot"er*ise t"an t"rou!" t"e %ediu% o a $an, in t"e country o residence o t"e

re%itter&

=es. 9xchange /ouses in the @ulf countries have been permitted to send remittances into India by means

of ;;s, s and s drawn on banks in India.

Can Exc"an!e 5ouses dra* drats in orei!n currencies&

=es. 9xchange /ouses can draw drafts in &.5. dollar or %ound sterling on a limited number of branches

of the drawee bank in India, if they have entered into such an arrangement with the drawee bank.

Can NRIs re%it unds t"rou!" Exc"an!e 5ouses or in'est%ent in 6o'ern%ent securities/ National Sa'in!s

Certiicates and 7nits o 7nit Trust o India&

=es.

Can NRIs re%it unds t"rou!" Exc"an!e 5ouses or in'est%ent in s"ares#de$entures o Indian co%panies&

=es, sub"ect to general)specific permission of Reserve Bank for such investment.


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NRIs ;ormented and *!eated Aut of ;!eir ropertiesBy Kul Bhushan

NRI property experiences in India can put any horror film to shame. An NRI couple from USA came

to Mumbai on vacation and when they visited their ancestral farm, the illeal occupiers refused to

vacate the land. !he NRI was brutally beaten, his wife sexually molested and hounded out of theirproperty rabbed by the neihbours.

Althouh the numbers do not reveal the full harassment, no less than ",### NRIs are cauht in land

disputes in $un%ab. US&based NRIs ownin properties in 'ol(ata, New )elhi, *handiarh and 'erala

have been strulin fruitlessly for over two decades to recover their properties without any hope s

far. NRIs from every state in India residin in every country can recount their ho#rrendous tales of

their ancestral property or their own holdins illeally rabbed, occupied and confiscated by their

relatives, friends or aents.

+state developers and aents have duped NRIs because of insufficient inspection of all the relevantproperty documents. Suppressed encumbrances and defective ownership titles, have led to

complications, even in the case of resident buyers. +ven )eeds of Reistration showin false titles

have been found to be fored because proper searches of the title ship records of the precedin "#&

# years, (ept in the offices of Reistration )epartment, are not commissioned by the buyers,

throuh their lawyers, accordin to Mr M. M. Maheshweri, *o&*hairman of the -lobal ranisation o

$eople of Indian riin /-$I0 !as( 1orce.

NRIs are particularly vulnerable to such malpractices, because of the lac( of time, (nowlede and,

proper leal support at their disposal. *an we thin( of formulatin comprehensive central uidelines

to help them ta(e all the necessary steps, before finalisin their property deals2 !his would perhapsavert future ha3ards, created not by the illeal rabbers of NRI property, but by the fraudulent

property dealers, who exploit the NRI unsuspectin credulousness.P

!heir unceasin harassment, and seeminly endless strule, to extricate their fraudulently rabbed

property, from the clutches of local tormentors, throuh the cobwebs of 4aw *ourts, surrounded by

ma3e of leal labyrinths, pac(aed as the 5due process of the Indian 6udicial System5 turns them

away from India. !his saa of our unrelieved pain leaves us befuddled, dismayed and distressed,

added Mr Maheshweri.

+nouh is enouh and so in 6anuary this year, -$I held a special panel durin its annual

conference in New )elhi. Some leal experts were invited to ive heir advice and opinions to try and

find wor(able solutions. !he aim was to devise a way out, to resolve the property issues of the NRIs

within the parameters of the Indian leal system. Indian law does not provide ready recourse to an

NRI7 so a special %udicial dispensation for NRI property problems is desperately needed. A number o

special courts and tribunals have been set up to deal with speciali3ed cases, so why not a 1ast !rac(

court or tribunal for NRIs to resolve their property disputes2 NRIs lose out because the Indian leal

system ta(es years, if not decades, to pronounce %udments on cases and the system is overloaded


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with millions of pendin cases that would ta(e decades to clear.

After the hihly emotional session durin which a number of NRIs recalled their horror stories with

dismay, a stron resolution was passed to ure the -overnment of India to loo( into this matter. A

lare number of NRIs wrote bac( to -$I with their property woes after this resolution was

published in its newsletter last month. !he *hairman of this !as( 1orce, $rof. Subash Sharma of

Southern Illinois University, referred some of them to lawyers in New )elhi. 4ast wee(, the !as(

1orces sent a stron letter to the Indian 4aw Minister to loo( into this matter with a copy to the

Minister for verseas Indian Affairs urin them to act on -$I Resolution 8uic(ly due to the

urency of the problem.

9hether it a hereditary, residential, or commercial property, one of the main reason for theseP

scams is that the NRIs are at a reat disadvantae that they can not contest court cases in India.P

!he civil case ta(es :;&e offered to buy the flat at one tenth of the mar(et price. >ere was a

offer the NRI could not refuse because unless he sold the flat, he would face a court case. It was a

touh decision for me.

Date post:	01-Mar-2018
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