What are the provisions related to FEMA Act 1999 for NRIs giving Power of Attorneys in India?
SBNRI Team
answered on 09/02/2021
As per the FEMA Notification under the Reserve Bank of India, with respect to Power of Attorney for an NRI in India, it is stated that:
- Authorized dealers / banks may allow operations on an NRO account in terms of 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 shall not repatriate outside India funds held in the account under any circumstances other than to the non-resident individual account holder himself nor shall 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.
- Any remittance outside India shall be within the ceiling as may be prescribed by the Bank from time to time and subject to tax compliance.
Related Questions
SBNRI Team
answered on 22/03/2020
There are a lot of investment opportunities for NRIs in India. We have assorted the top 5 investment opportunities for NRIs in India for you, check them out below: The top 5 investment opportunities for NRIs in India are: 1. Fixed Deposit Bank Accounts: The most common and rewarding investment opportunity for NRIs […]
SBNRI Team
answered on 14/05/2022
PMS or Mutual Funds We receive a lot of queries from many NRI investors who struggle between PMS and mutual funds. With so many investment options to choose from, it is very confusing to select the right investment option for most individual investors. For example, there are many ways to invest in equities – […]
SBNRI Team
answered on 16/11/2020
Your Demat Account will directly relate to your residential status: If you’re completing the stipulated number of days outside India (184 days or more in one financial year) then you’ll be required to open an NRI Demat Account. If you’re not an NRI as per the stipulated number of days (i.e. if you’re staying 184 […]
SBNRI Team
answered on 30/03/2020
The minimum investment in PMS/limit to avail Portfolio Management Services for both NRIs and Residents is Rs.50,00,000/- (Rs. 5 Million). This can be done either by paying through existing funds or through the transfer of an existing investment portfolio to the service provider. How to invest in PMS? Portfolio Management Services (PMS) can […]
