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