NRI Accounts: Things To Know While Appointing A Mandate Holder

Posted By:

Mandate holder in case of an NRI is a person who is authorized to operate NRE, NRO accounts when a Non Resident Indian (NRI) is not present in India.

NRI can appoint any of his friends whom he trusts, family members, banks usually close family members are preferred as a mandate to avoid discrepancy which may arise later.

NRI Accounts: Things to Know While Appointing a Mandate Holder

How to add a Mandate Holder?

To add a mandate holder in your account, one can send or submit a Mandate form if he is not available in India. 

  • Along with Mandate holder's Photograph.
  • Valid Photo ID Proof.
  • Address Proof self-attested by mandate holder.
  • Mandate holder should also carry original documents for verification. 
  • Signatures of all the account holders are mandatory for mandate addition.

The set of documents along with originals needs to be submitted by the mandate holder by visiting a bank branch.

Once the mandate is registered a cheque book and an ATM card will be sent to the mandate holder at their communication address.

Things to Know While Appointing Mandate Holder

  • Only a resident individual can be a mandate holder. 
  • Mandate holder can operate the account with day to day transactions.
  • However, he cannot open or close the account on behalf of the account holder.
  • Mandate holder can issue cheques to a third party. However, the chequebook will be issued in the name of primary applicant only.
  • Mandate holder cannot repatriate the funds abroad.
  • Mandate can withdraw money Only for local disbursements.
  • Mandate holder can make investments on your behalf.

One can only add one mandate holder to a single account at a time. One can anytime replace the mandate holder with a new one.

GoodReturns.in

Read more about: nri, banking
Story first published: Tuesday, May 26, 2015, 13:10 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?