Can NRE accounts be opened by the power of attorney holder in India on behalf of a non-resident?
• No. • Can resident Power of Attorney holder operate on the NRE accounts? • Yes, but only for local payments to be made on behalf of the account holder, In cases where the account holder or a bank designated by him has been granted permission by Reserve Bank to make investment in India, the Power of Attorney holder (POA) is permitted to operate the account or facilitate such investment. POA holders cannot, however, make gifts from NRE accounts. • Can Power of Attorney holder credit proceeds of foreign currency notes/bank notes and travellers cheques to the NRE accounts? • No. • What is the distinction between NRE account and NRO account? • Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO account cannot be remitted abroad but used only for local payments in rupees. Consequently, funds remitted from abroad or local funds which can otherwise be remitted abroad to the account holder can only be credited to NRE accounts. Funds which do not qualify, under
Related Questions
- Can a power of attorney holder in India open a NRE account on behalf of a non-resident and can he credit proceeds of foreign currency notes / travellers cheques to NRE ACCOUNTS ?
- Can Non Resident accounts be opened/ operated by the Power of Attorney holder in India, on behalf of the non-resident?
- Can NRE accounts be opened by the power of attorney holder in India on behalf of a non-resident?
