It has been decided that individuals resident in India may be permitted to include non-resident close relative(s) (relatives as defined in Section 6 of the Companies Act, 1956) as a joint holder(s) in their resident bank accounts on ‘former or survivor’ basis. However, such non- resident Indian close relatives shall not be eligible to operate the account during the life time of the resident account holder.

RBI/2011-12/173
A.P. (DIR Series) Circular No. 12

September 15, 2011

To

All Banks Authorised to Deal in Foreign Exchange

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Madam / Sir,

Savings Bank account maintained by residents in India – Joint holder – liberalisation

Attention of Authorised Dealer (AD) banks is invited to Regulation 2(vi) of FEMA Notification No. 5 dated May 3, 2000 in terms of which Non-Resident Indian (NRI) means a person resident outside India who is a citizen of India or is a person of Indian origin.

2. The Committee to Review the Facilities for Individuals under the Foreign Exchange Management Act, 1999 has recommended in its Report that resident individuals may be permitted to include non-resident close relative(s) (relatives as defined in the Companies Act, 1956) as joint account holder(s) in their resident bank accounts.

3. On a review, it has been decided that individuals resident in India may be permitted to include non-resident close relative(s) (relatives as defined in Section 6 of the Companies Act, 1956) as a joint holder(s) in their resident bank accounts on ‘former or survivor’ basis. However, such non- resident Indian close relatives shall not be eligible to operate the account during the life time of the resident account holder.

4. AD banks may bring the contents of this circular to the notice of their constituents/customers concerned.

5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,
(Meena Hemchandra)
Chief General Manager In-Charge

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Category : Fema / RBI (3272)
Type : Circulars (7508) Notifications/Circulars (30272)
Tags : fema (531) Fema Notifications (721) RBI Notifications (1869)

0 responses to “FEMA – RBI permits individuals resident in India to include non-resident close relative(s) as a joint holder(s) in their resident bank accounts”

  1. Manan Shah says:

    Dear Sir,

    I want to know the exact benefit of such scheme and how the goverment will control on using the NRI funds…..

    Manan Shah

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