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Yes, OCI cardholders living in India must have a valid foreign passport to travel to India. An OCI card is a travel document and a lifetime visa for foreign national Indian origin people. It acts as a visa, not as a passport. So a foreign national should have a valid foreign passport, which acts as proof of foreign nationality.
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Yes, an OCI cardholder should have a valid passport, which is an important travel document. If an OCI cardholder stays in India without a valid passport, then it is illegal, and they can face penalties. As, OCI card allows foreign nationals to have a life-long visa, to travel to India, they need to have a valid passport for their stay in the country.
I have applied for the OCI card and get many benefits from the OCI card, like multiple visa-free entries, no need to report the duration of stay in India to any higher authority or local police, but for the entry or exit in India, an OCI cardholder needs a valid passport, which also acts as a valid proof of foreign nationality.