Q175. Senior citizen investment scheme in India

Question: Hello Sir, My uncle and aunty are born and brought up in India and now they stay in USA and have OCI. In this case , I want to ask that whether they can invest in the Senior Citizen Investment Scheme, 2004. I am aware that the scheme is not for NRI's , but are my uncle and aunty eligible since they have OCI? Please reply at your earliest. Regards, Reema Sarvaiya

Answer: As you are already aware that the scheme is not for Nri's. I guess OCI status needs a slight clarification. OCI holders are actually foreign citizens of Indian origin and are issued a lifelong visa. This visa does not in anyway change their citizenship. While OCI does allow the holder to stay in India as long as they wish and are considered at par with other Indian residents in many aspects of day to day life, it does not allow them access to some jobs, certain investments and restricted areas that are specifically reserved for Indian citizens. Non resident Indians, Persons of Indian Origin are not eligible to open an account under this scheme. I believe the interest payable under this scheme is 9% and comparable interest can be generated from other forms of investment in India.