13B.7
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Operations by Residents under Powers granted by Non-residents
Authorised dealers may allow operations on NRE accounts by residents in terms of Power of Attorney or other authority granted in the residents favour by the non-resident account holders, provided they are restricted to withdrawals for local payments. In cases where the account holder or a bank designated by him has been granted permission by Reserve Bank to make investments in India, the Power of Attorney holder may be permitted by authorised dealers to operate the account to facilitate such investments. The resident power of attorney holders should not, however, be allowed to repatriate outside India funds held in the accounts under any circumstances or make payment of gifts on behalf of the account holder.