Indian Consulate reassures OCI cardholders amid misleading reports; MEA confirms no new changes to rules

Several OCI cardholders have raised complaints regarding their reclassification as foreigners, highlighting a growing sentiment of marginalization within the OCI community.

The Consulate General of India in New York issued a statement on Saturday to reassure the Indian American community regarding misleading reports about restrictions on Overseas Citizen of India (OCI) cardholders. In their announcement, the Consulate clarified, “We have come across news reports spreading false information that restrictions have been placed on OCI cardholders in the recent past. Friends in the Indian American community are hereby informed that no new change has been introduced for OCI cardholders. Provisions of the Gazette Notification dated March 4, 2021, regarding the rights of OCI cardholders, continue to remain in force.”

We have come across news reports spreading false information that restrictions have been placed on OCI card holders in the recent past.Friends in the Indian American community are hereby informed that no new change has been introduced in the recent past for OCI card pic.twitter.com/iD9qGcIQBY
India in New York (@IndiainNewYork) September 28, 2024

These reassurances follow reports claiming that the Indian government recently reclassified OCI cardholders as "foreign nationals," effectively stripping them of several privileges they previously enjoyed. The alleged changes would require OCI holders to obtain permits to visit certain regions, complicating access to India for the global Indian diaspora. This has led to frustration among Non-Resident Indians (NRIs), who expressed concerns over the sudden increase in bureaucratic hurdles affecting travel, business, and religious activities.

Critics argue that these perceived restrictions could harm the relationship between India and its overseas citizens. OCI cardholders are significant contributors to India’s Foreign Direct Investment (FDI), and concerns have emerged that these changes may undermine trust and deter future investments. There have been calls for legal protections for NRI investments, emphasizing their vital contributions to various sectors within India.

The Ministry of External Affairs (MEA) also responded to the controversy, stating that the Indian government is merely implementing rules that were notified in March 2021, with no new changes introduced, CNBC-TV18 reported. Several OCI cardholders have raised complaints regarding their reclassification as foreigners, highlighting a growing sentiment of marginalisation within the OCI community.