If you are an NRI looking at farmland back home, you have probably read three blogs giving three different answers. One says you can buy with RBI permission, another says a gift from family is fine, a third says inheritance only. This page gives the correct position, anchored to the FEMA and RBI instruments themselves.
The short answer
Under FEMA, an NRI or OCI cannot purchase agricultural land, plantation property or a farmhouse in India. The single route to owning agricultural land is inheritance. Land you bought lawfully while you were a resident Indian can be kept after you become an NRI.
In brief
FEMA prohibits NRIs and OCIs from buying or being gifted agricultural land. Inheritance is the only acquisition route, and inherited land may be transferred only to a resident Indian. Sale proceeds are repatriable up to USD 1 million per financial year.
Table of Contents
What exactly do FEMA and RBI prohibit for NRIs
FEMA prohibits an NRI or OCI from buying agricultural land, plantation property or a farmhouse in India. The bar sits in Section 6(3)(i) of FEMA 1999, was given effect by Notification No. FEMA 21/2000-RB dated 3 May 2000, and is now carried into the FEMA (Non-Debt Instruments) Rules, 2019.
The prohibition covers three categories only: agricultural land, plantation property and a farmhouse. Everything else is open. The RBI’s own notification confirms that an NRI may purchase any immovable property in India other than these three, so residential and commercial property is available under general permission. The restriction is about land use, not about you as a person.
Rule 24 of the FEMA (Non-Debt Instruments) Rules, 2019 extends the same treatment to Overseas Citizens of India, so an OCI card holder faces the identical bar. The OCI card carries many resident-like benefits, but buying agricultural land, plantation property or a farmhouse is specifically excluded from them.
What an NRI or OCI can and cannot buy
| Property type | Can an NRI or OCI buy it? |
|---|---|
| Residential property | Yes, under general permission |
| Commercial property | Yes, under general permission |
| Agricultural land | No |
| Plantation property | No |
| Farmhouse | No |
Who counts as an NRI under FEMA
Under FEMA, your residential status turns on where you live and intend to live, not on your citizenship. Section 2(v) treats a person who has resided in India for more than 182 days in the preceding financial year as a resident. Fall short of that, and you are a non-resident for FEMA purposes.
Two points matter here. First, intention counts alongside the day count: a person who leaves India for employment, business or an uncertain-duration stay abroad becomes a non-resident, and a person who comes to India on the same terms becomes a resident. Second, residential status is determined by operation of law, and the onus of proving it sits with the individual, not the bank or the registrar.
This is why the passport does not settle the question. A person holding an Indian passport who lives and works abroad can still be a non-resident under FEMA, and the agricultural-land bar applies to them. OCI card holders are treated the same way for this purpose under Rule 24 of the NDI Rules, 2019.
Can an NRI ever acquire agricultural land: inheritance, gift, or purchase
An NRI can acquire agricultural land in India by inheritance only. Purchase is prohibited. Gift is also prohibited: the RBI and MEA FAQ is explicit that agricultural land, plantation property and a farmhouse cannot be acquired by way of gift, so the gift route covers residential and commercial property alone.
This is where most online guidance is simply wrong. Several widely read articles claim an NRI may receive agricultural land as a gift from a resident relative. The official position does not allow it. For agricultural land, gift is excluded and inheritance is the sole acquisition route. Getting this right is the difference between a valid holding and a transaction that can be undone.
| Route | Agricultural land? |
|---|---|
| Purchase by an NRI | No |
| Gift to an NRI | No |
| Inheritance by an NRI | Yes |
| Held from when the person was resident | Yes, may continue to hold |
Inheritance is permitted, but the mechanics, the heir or legal-heirship certificate, the mutation entries and the survey records, are a subject on their own. For the step-by-step, read how inheritance of farmland actually works for an NRI.
Prior ownership is protected. If you lawfully bought agricultural land while you were a resident Indian, Section 6(5) of FEMA lets you continue to hold it after you become an NRI or OCI, without any fresh RBI approval. Becoming an NRI does not force a sale of land you already owned.
Can an NRI get special RBI permission to buy farmland
An NRI can apply to the Reserve Bank of India for specific approval to acquire agricultural land, but general permission does not exist and approval is rare. The RBI considers each such application in consultation with the Government of India, and decides it case by case.
In practice this route is narrow. Because there is no standing permission, every application starts from a prohibition and asks the regulator to make an exception. Approvals are uncommon and depend entirely on the specifics put before the RBI. It is honest to treat specific approval as a theoretical door rather than a planning assumption.
If an NRI inherits or holds farmland, what about selling and repatriation
Agricultural land that an NRI has inherited or lawfully held can be sold or gifted only to a resident Indian citizen, not to another NRI or OCI. Sale proceeds can be repatriated up to USD 1 million per financial year from an NRO account, on documentary support.
The transfer limit is strict. An NRI or OCI may pass inherited or held agricultural land on to a person resident in India who is a citizen of India, and to no one else. Selling or gifting it to a fellow NRI or OCI is not permitted.
Repatriation follows the standard FEMA mechanism. From the NRO account, the ceiling is USD 1 million per financial year, and the bank will ask for documentary evidence of the inheritance, an undertaking, and a chartered accountant’s certificate in the format prescribed by the CBDT. Tax on the sale, capital gains and TDS, is a separate subject and is not covered here.
What happens if an NRI buys agricultural land anyway
A purchase of agricultural land by an NRI in breach of FEMA is not a valid acquisition, and the consequences are serious. The transaction can be treated as void, and enforcement action under FEMA can follow, including through the Enforcement Directorate.
This page does not set out the full penalty picture, the monetary exposure, the timelines and the enforcement process, because that is a topic in its own right. For the detail, read the penalties for an NRI buying agricultural land. The point to carry away is simple: an invalid purchase does not become valid with time, so the safe path is to stay inside the rules from the start.
Frequently Asked Questions
What are the new rules for NRIs in India in 2026?
The core prohibition is unchanged in 2026. Under the FEMA (Non-Debt Instruments) Rules, 2019, an NRI or OCI still cannot buy agricultural land, plantation property or a farmhouse anywhere in India. Some states, including Punjab and Kerala, have discussed changes, but none has been enacted.
Can an NRI buy non-agricultural land or property in India?
Yes. FEMA’s bar is specific to agricultural land, plantation property and farmhouses. An NRI or OCI may buy residential and commercial property in India under general permission, without RBI approval.
Can an NRI buy agricultural land jointly with a resident Indian?
No. The prohibition attaches to the NRI’s own acquisition. An NRI cannot acquire agricultural land by purchase even jointly with a resident Indian, because the NRI’s share of the purchase is still barred under FEMA.
Can an NRI with an Indian passport buy agricultural land?
No. FEMA looks at residential status, not the passport. A person who holds an Indian passport but lives abroad and is a non-resident under FEMA cannot buy agricultural land in India.
Is it legal for me as an NRI to own farmland in India at all?
You can legally hold agricultural land only if you inherited it, or if you owned it from when you were a resident Indian. You cannot legally acquire it by purchase or gift as an NRI. Residential and commercial property you can own freely.
For the position on agricultural land in a specific state, see buying agricultural land in Karnataka as an NRI.
Where this leaves an NRI family
Direct purchase of agricultural land is closed to NRIs under FEMA. That leaves a fair question: if you are an NRI family that wants a lawful connection to well-run Indian farmland, what legitimate structures actually exist? The honest starting point is the law, not a promise of returns.
For the complete picture, read the full picture on NRI farmland ownership in India. If you are still weighing the basic question, whether an NRI can buy farmland at all sets it out. And to see how Hasiru works with NRI families, read on there.
About the publisher
Published by Hasiru Farms, a Bengaluru-based managed farmland company founded by M.S. Akshar. Hasiru Farms conveys individual, registered title to each buyer and runs its own legal due diligence on the land it develops.
