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NRIs to operate resident bank a/c on 'either or survivor' basis: RBI

Joint account holder facility may be extended to all types of resident accounts, including savings bank accounts

January 10, 2014 10:16 IST | India Infoline News Service
The Reserve Bank of India on Thursday said that banks may include a close NRI relative as a joint holder in an individual resident's existing or new bank account on an "either or survivor" basis.

Such accounts will be treated as resident bank accounts for all purposes and all regulations applicable to a resident bank account will be applicable, the RBI said in a notification.

Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI close relative will not be eligible for credit to this account, it said.

The NRI close relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself.

Where the NRI close relative becomes a joint holder with more than one resident in such account, such NRI close relative should be the close relative of all the resident bank account holders.

Where due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorized as Non-Resident Ordinary Rupee (NRO) account as per the extant regulations.

Such joint account holder facility may be extended to all types of resident accounts, including savings bank accounts, it added.


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