Foreign Exchange Management (Deposit) Regulations, 2000- Operation of NRO account by Power of Attorney Holder – RBI instructions
As announced in the Annual Policy Statement for the year 2007-08, it has been decided to extend the facility of operation of NRO account by Power of Attorney granted in favour of a resident by the non-resident individual account holder. Accordingly, the banks may allow operations on an NRO account in terms of such a Power of Attorney, provided such operations are restricted to
(i) all local payments in rupees including payments for eligible investments subject to compliance with relevant regulations made by the Reserve Bank; and
(ii) remittance outside India of current income in India of the non-resident individual account holder, net of applicable taxes.
The resident Power of Attorney holder is not permitted to repatriate outside India funds held in the account other than to the non-resident individual account holder nor to make payment by way of gift to a resident on behalf of the non-resident account holder or transfer funds from the account to another NRO account.
RBI CIRCULAR NO. 64/RBI., Dated: May 25, 2007