Friday, June 15, 2007

OPERATION OF NRO ACCOUNT BY POWER OF ATTORNEY HOLDER

It has been decided to extend the facility of operation of NRO account by Power of Attorney granted in favour of a resident by the non-resident individual account holder. Accordingly, the banks may allow operations on an NRO account in terms of such a Power of Attorney, provided such operations are restricted to

  • all local payments in rupees including payments for eligible investments subject to compliance with relevant regulations made by the Reserve Bank; and  
  • remittance outside India of current income in India of the non-resident individual account holder, net of applicable taxes.
The resident Power of Attorney holder is neither permitted to repatriate funds outside India, other than to the non-resident individual account holder, nor to make payment by way of gift to a resident on behalf of the non-resident account holder or transfer funds from the account to another NRO account
 

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