Module: | NRI Banking Basics & NRE Accounts
Q2: Arjun, an NRI based in Dubai, wishes to involve his family in India, in managing his NRE account. He wants to add his resident father as a joint holder, and give a Power of Attorney (POA) to his brother. Which of the following arrangements are permitted, by RBI regulations?
1. He can add his resident father as a joint holder, on a "Former or Survivor" basis.
2. He can add his resident father, as the primary (first) account holder.
3. His brother (the POA holder) can use the account, to make local rupee payments, for Arjun's family in India.
4. His brother (the POA holder) can freely repatriate funds from the account, to Arjun in Dubai.
2. He can add his resident father, as the primary (first) account holder.
3. His brother (the POA holder) can use the account, to make local rupee payments, for Arjun's family in India.
4. His brother (the POA holder) can freely repatriate funds from the account, to Arjun in Dubai.
✅ Correct Answer: B
An NRI can hold an NRE account jointly with a resident relative only on a "Former or Survivor" basis.
The NRI must be the primary holder.
A resident POA holder can make local payments but generally cannot repatriate funds.
The NRI must be the primary holder.
A resident POA holder can make local payments but generally cannot repatriate funds.