The government of India has issued a gazette notification recently on January 9, 2015 based on the Ordinance passed on January 6, 2015 to amend the Indian Citizenship Act, 1955. The gazette notification can be found here and Ordinance can be found here.

Effective January 9, 2015 the government of India and the Indian consular posts abroad will not process any applications for PIO and pending applications will be returned to the applicant(s) with instructions to re-apply directly for OCI card. The existing PIO card holders are deemed OCI card holders. Earlier, the PIO card holders were required to register with the Foreigners Regional Registration Office (FRRO) for stays in India exceeding 180 days. Following the merger of PIO and OCI into OCI, s/he does not have register with nearest FRRO office even for stays exceeding 180 days.

The PIO card holders will have to contact the nearest Indian Embassy / Consulate abroad or one of the FRRO to pay the difference in fee and have their PIO cards endorsed with OCI stamping. This fee is higher for children. There is no deadline provided on the notification for existing PIO card holders to pay this difference in fee and obtain the endorsement. It is important to note that children born to Indian parents abroad, who had obtained citizenship by birth of that country were previously not eligible for OCI card, however this amendment allows such minor children to obtain status as OCI directly.