
If you are a Non-Resident Indian (NRI), then it will be difficult for you to be present physically every time you have to attend any financial and legal matters due to personal commitments, work, or some other purpose. To solve this problem, NRI grants the PoA to a trusted person who can act on their behalf as a representative in India.
It is the easiest way to handle tasks in India without being physically present. Two laws cater to the PoA broadly in India: the Indian Contract Act, 1872, and the Powers of Attorney Act, 1882. A PoA is a legal document that allows an appointed person to act on your behalf in some specific matters, such as real estate, banking, and others.
The person who grants the PoA is known as the Principal/Grantor, and the person who is granted the authority is known as the Constituted Attorney/Grantee/Agent. You can execute a PoA either from India or your country of current residence. In this blog, we will discuss the PoA as per the banking needs of NRIs in India.
There are different types of PoAs depending on the purpose; they are as follows:
You can appoint any trusted person or Indian resident Grantee who is above the age of 18 years to act on your behalf. Non-Resident Indians who cannot be physically present in India to sort their legal and financial matters, then they can appoint a Power of Attorney for NRI banking services.
Here are some of the benefits and the transactions that a PoA can execute:
1. Banking and Financial Operations
2. Managing Real Estate
3. Commercial and other matters
There is a difference between the mandate holder and a power of attorney. However, they are both used in managing your banking needs for NRO/NRE accounts.
According to the rules and regulations prevailing under the Foreign Exchange Management Act (FEMA) and the rules of Indian banks, the Indian resident grantee is required to perform the following activities:
According to the rules of FEMA, Indian banks, compliance with the applicable laws is compulsory, and it allows the grantee to perform the following activities through POA in banking:
The following conditions are those that are not permitted to the Indian Resident Grantee:
As you already know, PoA can be very helpful for the NRIs, but sometimes they put you at risk of being misused. The grantor can cancel the POA anytime they feel it is being misused, regardless of whether the POA is complete or not. To avoid the misuse of the powers, you can include these conditions in the PoA to protect your interests:
1. Details of Principal and Agent: You have to clearly mention the personal details of both the principal and the agent, including:
2. Reasons of PoA
3. Others
In the process of appointing a grantee, you can either choose from within India or outside India, but he/she should follow certain requirements:
For a valid Power of Attorney, it should be executed in front of a public notary. In some states of India, you even have to register it depending on the purpose of a PoA and its nature.
In the cases of POA outside India, the laws of that country would apply. But, if the POA is related to the matters or assets of India, then some conditions will apply:
The registration requirements for a POA and its notarisation are different for the states and can vary from one another. The requirements for the registration of PoA depend on its purpose. Understand this by an example, a PoA for the sale of immovable property requires it to be registered in most of the states in India, like Maharashtra, Kerala, Rajasthan, etc.
One more important thing is that you should keep in mind that the amount of stamp duty payable on the PoA can also differ for the different states. You should consult a lawyer before engaging legally in these matters. Each state has its own rules and regulations for appointing a power of attorney.
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Chat NowYou can make all the decisions by yourself and execute a POA if you have the information about the financial and legal matters. As an NRI, if you are planning to appoint a Power of Attorney for your financial and legal matters related to banking or other matters, then you should choose a trusted platform for that. Visament has a team of experts, and it is India's trusted platform to handle matters related to power of attorney.
We will help you with the documentation process, which also includes the notarization and registration (if necessary). You can always get the updates regarding this process from our website. It's better to seek guidance from the experts in matters of finance or banking because you never want the PoA to be misused. Select Visament and secure your PoA in India.
Yes, a Power of Attorney can be used for Indian bank accounts, but you will need a specific authorization from the principal and fulfill the bank's requirements.
You can write a Power of Attorney letter for an Indian Bank by mentioning all the personal details at the start. The main line will be like this: " I [Your full name], residing at [ your address], hereby appoint [Authorized person's full name], residing at [authorised person's address], as my true and lawful attorney-in-fact to act on my behalf in matters described in this document." Then you can mention the purpose of PoA carefully. This is the general statement that can be used.
Yes, an Indian POA can withdraw money from the joint account, but it can only be done if the account holder (s) or principal has mentioned it properly in the POA with the bank's permission and authorized them. If the agent is allowed to make transactions, it also means they can withdraw money.
Yes, NRIs can appoint different agents to do the same task, hence they can execute multiple PoAs for the same purpose.
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