Module: | FCNR(B) & Loan Regulations
Q14: Priya, an NRI, wishes to open joint accounts with her mother, who is a resident of India. She explores two options: an NRE account, and an NRO account. She specifically wants to know, about the operating mandates allowed for these joint accounts. Which of the following statements, correctly describe the regulations?
1. For the NRE account, she can add her resident mother as a joint holder, only on a "Former or Survivor" basis.
2. For the NRO account, she can add her resident mother as a joint holder, on an "Either or Survivor" basis.
3. For both accounts, the resident mother is permitted to be the primary (first) account holder.
4. The NRO account offers more flexibility, regarding joint operation with residents, compared to the NRE account.
2. For the NRO account, she can add her resident mother as a joint holder, on an "Either or Survivor" basis.
3. For both accounts, the resident mother is permitted to be the primary (first) account holder.
4. The NRO account offers more flexibility, regarding joint operation with residents, compared to the NRE account.
✅ Correct Answer: A
In NRE accounts, residents can only be joint holders on a "Former or Survivor" basis.
In NRO accounts, "Either or Survivor" is allowed.
The NRI must be the primary holder in NRE accounts.
In NRO accounts, "Either or Survivor" is allowed.
The NRI must be the primary holder in NRE accounts.