Joint Account Holder Facility for NRIs
In what could make banking a breeze for non-resident Indians, the RBI has allowed their relatives to become joint account holders in the savings bank account in the country.
According to the banking regulator, such an account will be treated as resident bank account for all purposes and all regulations applicable to a domestic account will be applicable.
“The joint account holder facility will be extended to all types of resident accounts, including savings bank account,” RBI said in a notification.
However, the RBI said, the relative cannot credit cheques, remittances, cash, card or any other proceeds to this account.
“The relative shall (be allowed to) operate such account only for and on behalf of the NRI for domestic payment and not for creating any beneficial interest for himself,” RBI said.
An explanation for actual need for such a facility and a declaration duly signed by the non-resident account holder must be provided to the bank.
Further, if due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorised as Non-Resident Ordinary Rupee (NRO) account. “Onus will be on the non-resident account holder to keep the bank informed to get the account categorised as NRO account,” RBI said.
Business Line, New Delhi, 10-01-2014