btw, IMHO, this whole OCI thing doesn't make sense to me. GoI should simply say dual citizenship not allowed. period.
they could have achieved the same as follows: simply add a consular/GoI stamp statement in PIO card (for the people who would satisfy the current OCI requirements) saying:
"FRRO registration not required for any length of stay." (similar to "ECNR not required" in passport.)
This would have achieved the same effect without much expense. Granted, it may not give the satisfaction of the word "citizenship" to some people.
It is not that simple. This is a multi-year negotiation between the Indian government and the PIOs. On one end is the PIO lobby pushing for more rights, and on the other hand is the bureaucracy as well as genuine concerns about how to do this.
A recall that a couple of years ago, they removed the restrictions on PIOs having to pay dollar fare for travel within India. This also came about as part of this lobbying. Same goes for hotel stay. Granted that in many cases they just go by your look and if you look Indian, you pay rupees. But having this defined in law has its own advantage.
On the other hand, bureaucracy being bureaucracy, it can hit either government or private firms. I was looking for some type of account with a bank/investment company, and they told me that they can do somethings for PIOs but not OCIs. On the face it sounds ridiculous as these are just both visas, and if at all, OCI ranks higher than PIO, but the bank would not budge because this is how their operating instructions are.
Oh well...
Anyway, PIO, OCI have come into existence over a decade, and their process has streamlined bit by bit. I think and hope this is not the end of the process, and it will go further. The challenge is that with a lifetime visa and no registration, the demands of 90% of PIO population might be met, and there may not be much motivation for improvements going forward. Let us see if the next pravasi divas brings something, given that this is a full 6-9 months after the elections and a relatively stable government so the government might be safe adding a few more measures.