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.
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.