Indian Nationales abroad: Understanding the differences between NRIs, OCIs and PIOs

T

he Indian diaspora that is spread across the globe has seen remarkable growth in recent years. This varies from students pursuing higher education abroad to professionals seeking global opportunities. Indians have made significant contributions to various fields worldwide. This expanding presence has fostered a diverse and dynamic community which enhances India’s cultural and economic influence on a global scale.

The Government of India (“Government”) offers different kinds of statuses to cater to its diverse diaspora and those with Indian heritage living abroad. Among these are the Person of Indian Origin (“PIO”) status, which provides certain benefits to individuals of Indian ancestry; the Non-Resident Indian (“NRI”) status, designated for Indian citizens living abroad; and the Overseas Citizen of India (“OCI”) status, which grants lifelong visa and other privileges to foreign nationals of Indian origin. Each category has distinct features and benefits which reflect the varied connections individuals maintain with India.

NON-RESIDENT INDIAN

An Indian citizen living abroad for employment, business, vocational purposes, or under circumstances suggesting an indefinite stay is considered a non-resident. However, the term ‘NRI’ may have different interpretations depending on the applicable laws and context.

For example, the Income Tax Act, 1961 defines an NRI based on the duration of stay in India during a financial year. Accordingly, if an individual stays in India for less than 182 days in a given financial year, they are classified as an NRI.¹

The Foreign Exchange Management Act, 1999 (“FEMA”) relies on the purpose of a person’s stay abroad. As per FEMA, if a person is residing outside India for an indefinite period and for the purpose of employment, business, or vocation, they are considered an NRI.²

NRI status confers specific financial and legal privileges and responsibilities. It primarily affects the tax obligations, access to various types of bank accounts³, and eligibility for investments⁴.

They are entitled to all benefits available to Indian citizens subject to notifications issued by the Government from time-to-time.⁵

In 2011, NRIs were also given voting rights through an amendment to the Representation of the Peoples Act, 1950. However, these benefits are accessible only in person at the polling station where they are registered as an overseas elector. They must present their original passport at the polling station to establish their identity.⁶

Section 20-A of the Representation of People Act, 1950 provides that an Indian citizen residing outside India:

(a) whose name is not included in the electoral roll;

(b) who has not acquired the citizenship of any other country; and

(c) who is absenting from their place of residence in India owing to his employment, education or otherwise outside India (whether temporarily or not),

shall be entitled to have his name registered in the electoral roll in the constituency in which his place of residence in as per their passport is located; and shall be eligible to vote at an election in their constituency.

It is interesting to note that in the 2017 winter session of Parliament, the Government proposed to remove the physical presence requirement for overseas voters imposed by Section 20-A of the Representation of the People Act. The proposed Bill allowed overseas voters to appoint a proxy to vote on their behalf,, and was passed in theLok Sabha.⁷

PERSON OF INDIAN ORIGIN

PIO is a foreign citizen (excluding nationals of Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka, and Nepal) who:

• Once held an Indian passport, or
• Has parents⁸, grandparents, or great-grandparents who were born and permanently lived in India (as defined by the Government of India Act, 1935) or in territories that later became part of India, and who were never citizens of the aforementioned countries, or
• Is the spouse of an Indian citizen or a PIO.⁹

• In Azimusshan Haider v. Union of India, 2008 SCC OnLine Del 773, the petitioner, who was Indian by birth, left India, and acquired a Pakistani passport, had applied for the Indian citizenship 21 years later, based on his birth and his ancestry. The rejection of his application by the Ministry of Home Affairs was quashed by the Court.

Benefits of a PIO Card:

1. PIO card holders do not require a visa to visit India for a period of 15 years from the date of issue of the PIO card.
2. Special counters for speedy immigration clearance at designated Immigration check posts.
3. They are exempted from registration at Foreigners Regional Registration Officer (“FRRO”) and Foreigners Registration Officer (“FRO”) if their stay does not exceed 180 days; if their stay exceeds 180 days, they shall have to register with FRRO/ FRO within the next 30 days.
4. No separate Student/Employment/Business visa will be required for admission in colleges/intuitions or taking up employment, business, etc in India.
5. They enjoy parity¹⁰ with NRIs in economic, financial, and educational benefits, like:
   • Acquisition, holding, transfer, and disposal of immovable properties in India, except agricultural/ plantation properties
   • Admission of children to educational institutions in India under the general category quota for NRIs, including medical and engineering colleges, IITs, IIMs, etc.

   • Availing Various housing schemes of LIC of India, State Government, and Central Government agencies

In Anushka Rengunthwar v. Union of India, 2023 SCC OnLine SC 102, the question was to the eligibility of OCI cardholders to appear for exams of the likes of National Eligibility and Entrance Test (“NEET”) that was withdrawn through a Notification, the Supreme Court held that the previous Notifications¹¹ from the Ministry of Home Affairs, and the Ministry of Overseas Indian Affairs (erstwhile) that conferred rights upon OCIs, should have prospective effect.

However, PIOs do not enjoy employment rights in Government services, nor can they hold any constitutional office in the Government. They need prior permission to undertake mountaineering, missionary activities, research work and to visit restricted areas in India.¹²

OVERSEAS CITIZEN OF INDIA

A foreign national, who was eligible to become a citizen of India on 26-01-1950 or was a citizen of India on or at any time after 26-01-1950 or belonged to a territory that became part of India after 15-08-1947 is eligible for registration as an OCI. Minor children of such persons are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she would not be eligible for OCI.¹³

Benefits:

1. Multiple-entry lifelong visa for visiting India for any purpose. However, OCI Cardholders need special permission to undertake research work in India and must apply to the Indian Mission/Post/FRRO concerned.
2. Exemption from registration with the FRRO and FRO for any length of stay in India.
3. Same facilities as NRIs in economic, financial, and educational fields, except for acquiring agricultural or plantation properties.
4. Registered OCI Cardholders have the same rights as NRIs for inter-country adoption of Indian children.
5. Registered OCI Cardholders receive the same domestic airfare tariffs as resident Indian nationals.
6. Registered OCI Cardholders pay the same entry fee as domestic Indian visitors to visit national parks and wildlife sanctuaries in India.
7. Registered OCI Cardholders have the same privileges as NRIs regarding:
   • Entry fees for visiting national monuments, historical sites, and museums in India.
   • Pursuing professions in India as per relevant Acts, including:
   • Doctors, dentists, nurses, and pharmacists
   • Advocates
   • Architects
   • Chartered accountants
   • Appearing for the All-India Pre-Medical Test¹⁴ (now replaced by the NEET) or other exams for admission as per relevant Acts.¹⁵

In Pallavi v. Union of India, 2023 SCC OnLine SC 1089, the Court relied on Anushka (supra), wherein the dispute was regarding the change of status of category of an OCI NEET candidate, who was earlier considered to be treated under the Foreign National category, and was later through a Notification was considered to be treated under the Indian National category, the latter decreasing her chances of success. The Court held that any Notification as to the rights conferred upon OCIs (through earlier Notifications) shall have retroactive and not retrospective effect.

The PIO card scheme has been withdrawn by the Government of India and merged with the OCI card scheme starting from 09-01-2015 . Hence, as per Government of India Gazette, Notification No.11, dated 9th January 2015, all PIO cardholders will be deemed to be OCI cardholders.¹⁶

How to apply?

To apply, an applicant has to complete Part ‘A’ of the online application form available at the Ministry of External Affairs website.

Then, submit Part ‘B’ in person at the High Commission along with four recent and required documents. These documents include proof of eligibility such as previous Indian passport and birth certificate, current foreign passport, local residence proof, and proof of relationship if applying based on parent’s Indian citizenship.

Present original documents for verification and attach photocopies. A fee of US$ 275 is payable in cash at the High Commission.¹⁷

COMPARATIVE CHART ON NRI/PERSON OF INDIAN ORIGIN/OCI CARDHOLDER¹⁸