Persons of Indian Origin (PIO) Card
Posted Jan 31, 1999

In January 1999, the Union Cabinet of the Indian Government cleared a proposal to issue persons of Indian origin (PIO) a card which will allow most Indian expatriates to enter India without a visa and will put them on a par with nonresident Indians (NRIs) in order to participate in the economic, educational and cultural advantages of India. The PIO card will give those persons of Indian origin, who have acquired foreign citizenship, domiciliary status and is being hailed by the Indian immigrant community as a first step towards "dual citizenship." The PIO card can only be issued to those who have held an Indian passport previously or those whose parents or grandparents were citizens of India. Presumably for security reasons, it excludes from this class of persons those who have now embraced citizenship of Pakistan or Bangladesh.

While still considering the conditions for issuing a PIO card, the Central Government of India, Home Ministry hopes to thank and appease PIOs who contributed substantially to the Resurgent India Bonds (RIBs) issued by the State Bank of India in 1998. The RIBs were issued to counter economic sanctions imposed by the United States following the nuclear tests.

PIOs, under the new law, would receive fiscal benefits comparable to NRIs, such as the freedom to invest up to 40 percent on a repatriation basis in the new capital of a manufacturing company, in partnership proprietary concerns, in deposits with companies, bonds launched by public sector undertakings and investment in commercial paper. PIOs would be permitted to invest in venture capital and buy shares and debentures. They would be able to bring in up to 10 kilograms of gold and 100 kilograms of silver on payment of a stipulated duty in foreign exchange. They will also be entitled to the concession/abated tax rate of 20 percent on specified incomes and able to open foreign currency accounts. A spouse of a PIO, who herself or himself is not a PIO will also be considered a PIO for limited financial transactions on joint accounts or purchases (excluding citizens of Pakistan or Bangladesh).