Appointing A Mandate Holder For NRI Accounts.Things To Know
Non-resident Indians (NRIs) can appoint a resident individual as a mandate holder to operate their NRE/NRO bank accounts. This facilitates the easy operation and monitoring of the account. While the NRI can appoint a family member or a person whom he trusts, banks prefer a close relative of the account holder.
The mandate holder can carry out day-to-day operations of the account on behalf of the NRI. These include drawing cheques to make local payments, make and renew fixed deposits, and invest in avenues open for NRIs.
Appointment form: The form for appointment of mandate holder is available at the branch or on the bank's website. The form needs to be signed by the account holder as well as the mandate holder.
Documents: KYC documents, such as the photograph and self attested copies of identity and address proofof the mandate holder, must be submitted to the bank. A specimen signature of the mandate holder is recorded by the bank.
Facilities: Various banks provide different facilities to a mandate holder. The NRI can also ask the bank to issue an ATM card and/or cheque book to the mandate holder by filling up the prescribed form.
Revoking mandate: The account holder can revoke the mandate at any time by giving requisite instructions to the bank in writing.
Points to note
> The account holder can set limits on the maximum amount that the mandate holder can debit from the account.
> The mandate holder cannot change personal details, such as name and address, or close the account.
> The mandate holder cannot transfer funds outside India, except to the account holder, or as a gift to a resident Indian.