RBI allows NRIs to operate joint resident bank A/c on "Either or Survivor" basis

RBI allows NRIs to operate joint resident bank A/c on
The Reserve Bank of India (RBI) on Thursday said Non-Resident Indians (NRIs) are now allowed to jointly operate a resident bank account with the resident account holder on "Either or Survivor" basis.

RBI said banks may include an NRI close relative in existing / new resident bank accounts as joint holder with the resident account holder on "either or survivor" basis, subject to fulfillment of a few conditions.

"Such account will be treated as resident bank account for all purposes and all regulations applicable to a resident bank account shall be applicable," said RBI laying down the conditions in the development for NRIs.

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

"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," RBI added.

Dion Global Solutions Ltd.

Read more about: rbi, nri, bank account
Story first published: Friday, January 10, 2014, 9:10 [IST]
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