FEMA 1999 Section 2 (v) defines who is a 'person resident in India'.  While defining the resident status of a person, the definition excludes certain categories of individuals.  Following  category of persons will be treated as 'Non-Resident Indians' (NRI).

• "a person who has gone out of India or who stays outside India, either for or on taking up employment outside India",
• For carrying on outside India a business or vocation out-side India

Explanation:

If a person goes outside India for employment or on taking up employment irrespective of the period of stay outside India his status will be Non Resident Indian (NRI).

a.       Persons of India Origin (PIO).

FEMA Notification 5 Regulation 2 para (xii) defines Persons of Indian Origin (PIO) as follows:

'Person of Indian Origin' means a citizen of any country other than Bangladesh or Pakistan, if

• he at any time held Indian passport; or
• he or either of his parents or any of his grand- parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955.

b.       Students who have gone abroad for studies:

Students who go abroad for higher studies irrespective of the period will be treated as Non Resident Indians.