Centre Introduces Stricter Rules for OCI Card Holders

Centre Introduces Stricter Rules for OCI Card Holders

Why in News? 

Recently the central government notified tougher rules for Overseas Citizen of India card holders. The move focuses on serious criminal charges or convictions. This change aims to ensure accountability and protect the integrity of the OCI Scheme.

Key Highlights of Centre Introduces Stricter Rules for OCI Card Holders

• Legal Basis: The Union Ministry of Home Affairs has introduced fresh conditions for cancelling the registration of Overseas Citizen of India (OCI) cardholders. These changes have been issued under the provisions of Section 7D of the Citizenship Act, 1955. This section empowers the government to withdraw OCI status in certain situations. 

• Revocation of OCI Registration: Under the updated provisions, an OCI cardholder will lose their registration if they face certain criminal outcomes in India. 

• The first ground is conviction in a court of law leading to a sentence of imprisonment for a period of two years or more. This applies regardless of whether the offence is minor or major, as long as the punishment awarded crosses this threshold.

• The second ground covers situations where a charge sheet has been filed against the individual for an offence that carries a potential maximum punishment of seven years or more in prison. This means that even before a court verdict, the legal process of being formally charge-sheeted in such serious offences can trigger the revocation process.

• Serious Offences: The notification distinguishes between minor infractions and serious criminal matters. The two-year conviction clause targets those who have been proven guilty and sentenced by a court, while the seven-year offence clause addresses individuals accused of severe crimes such as violent assaults, economic frauds, or offences under special laws. 

What is the Overseas Citizenship of India (OCI) Scheme?

• The Overseas Citizenship of India (OCI) Scheme is a special program launched by the Government of India to connect with people of Indian origin living abroad. 
• It allows eligible foreign citizens of Indian heritage to enjoy several benefits in India without giving up their current citizenship. 
• The scheme was introduced in 2005 after a long demand from the Indian diaspora for easier travel, residency, and engagement with India.
• The main aim of the scheme is to strengthen ties between India and its global community. 
• In 2000, the Government of India set up a High-Level Committee. Based on the committee’s recommendations, the Citizenship (Amendment) Act, 2003 introduced provisions for OCI status. 
• In 2015, the Indian government merged the PIO Card Scheme with the OCI Scheme to simplify procedures and reduce confusion. 

Eligibility Criteria and Application Process for OCI Card

• Eligibility Criteria: The Overseas Citizenship of India (OCI) card is available to certain categories of people of Indian origin and their families. The eligibility rules are defined under the Citizenship Act, 1955, and its subsequent amendments.

• • • An individual is eligible for an OCI card if they were a citizen of India on or after January 26, 1950. 
    • Eligibility also applies to those who were eligible to become Indian citizens on that date. 
    • People who belonged to a territory that became part of India after independence are also covered. This includes regions such as Sikkim, Goa, and territories integrated in later years.
    • Children and grandchildren of Indian citizens are eligible for OCI registration. 
    • Great-grandchildren of Indian citizens can also apply if they meet the other conditions. 
    • Minor children of eligible Indian citizens can apply, and in some cases, one parent being of Indian origin is sufficient for eligibility.
    • If an applicant or their parents or grandparents were citizens of Pakistan or Bangladesh, they are not eligible. 
    • The spouse of an OCI cardholder can apply only if the marriage has been registered and has lasted for at least two years before the application.

• Application Process: The Ministry of Home Affairs manages the process, and applications are submitted online. The digital system was introduced in 2011 to make the procedure faster and more transparent.

• • Applicants must first fill out the OCI registration form on the official portal. The form collects personal information, details of Indian origin, and other supporting facts. Applicants also upload scanned copies of essential documents. 
  • The next step is payment of the prescribed fee. As of 2025, the fee for a new OCI application is generally USD 275 for foreign passport holders applying from outside India. For applicants in India, the fee is around INR 15,000. 
  • Once the online form is submitted and payment is made, the applicant must visit the designated Indian Mission, Consulate, or Foreigners Regional Registration Office (FRRO) with the original documents for verification. 
  • Processing times can vary. In most cases, applications made from outside India take 8–10 weeks, while those submitted in India may be processed within 6–8 weeks. 
  • Once approved, the OCI card and a lifelong multiple-entry visa sticker are issued. 

Key Benefits and Privileges Enjoyed by OCI Cardholders

• One of the biggest benefits of the Overseas Citizenship of India (OCI) card is the lifelong visa facility. This visa allows multiple entries into India for any purpose except activities that require special permission. 
• OCI cardholders staying in India for more than 180 days are exempt from registering with the Foreigners Regional Registration Office (FRRO). This exemption saves time.
• OCI cardholders enjoy parity with Non-Resident Indians (NRIs) in several areas. 
• They can invest in real estate except for agricultural land, plantation properties, and farmhouses. 
• They also have access to the same admission process as NRIs for educational institutions in India.
• OCI cardholders can open bank accounts, invest in mutual funds, and participate in business ventures in India under the Foreign Exchange Management Act (FEMA), 1999.
• OCI cardholders may qualify for Indian citizenship in accordance with Section 5(1)(g) of the Citizenship Act, 1955, after holding the OCI card for a duration of 5 years, provided they have resided in India for at least 1 year within the preceding 5 years.
• They are permitted to enroll in the National Pension System (NPS) on the same basis as Non-Resident Indians (NRIs) for the purpose of long-term retirement planning.

Limitations & Restrictions of OCI Status

• OCI cardholders cannot vote in Indian elections at any level. 
• They are not eligible to become Members of Parliament, Members of Legislative Assemblies, or hold constitutional positions such as President, Vice President, or Judge of the Supreme Court. 
• OCI cardholders cannot purchase agricultural land, plantation properties, or farmhouses in India under the Foreign Exchange Management Act (FEMA), 1999. 
• OCI holders are not allowed to take up employment in certain sectors that require security clearance. This includes positions in defence services, government posts linked to national security.
• OCI cardholders are not permitted to hold positions in certain religious institutions where laws require Indian citizenship.
• For holders of an OCI Card, special permission is required for activities such as research, mountaineering, missionary or journalistic work, as well as for travel to Protected or Restricted Areas.

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