Legal Question in Banking Law in India

01.03.2014

Dear Sir / Madam,

No. Salary earned by an individual Non-Resident Indian (NRI) employed outside India has to be credited to his / her Non Resident External A/c (NRE A/c) opened by the NRI in India.

Regards,

02.03.2014

Dear Sir / Madam,

Further to my earlier reply, please read as follows :

Liberalization of regulations relating to Resident Bank accounts maintained by residents in India with relative Non-resident Indians (NRIs) as Joint holders

A.P. (DIR Series) Circular No. 87 dated January 09th, 2014

Presently, individuals resident in India are permitted to include RBI close relative(s) (relatives as defined in Section 6 of the Companies Act, 1956) as a joint holder(s) in their resident savings bank accounts on "former or survivor" basis. Such NRI close relatives are, however, not eligible to operate the account during the lifetime of the resident account holder in terms of the said instructions.

In view of the representations received by RBI, RBI has allowed to include NRI close relative (relatives as defined in Section 6 of the Companies Act, 1956) as joint holder with the resident account holder on "Either or survivor" basis subject to certain conditions.

While extending this facility, the Authorized Dealer (AD) bank should satisfy itself about the actual need for such a facility and also obtain the declaration duly signed by the non-resident account holder in the prescribed format.

For detailed conditions, please refer circular available on RBI website at :

http://rbidocs.rbi.org.in/rdocs/notification/PDFs/AP87090114FS.pdf

Regards,