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nri accounts assigning a mandate holder

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mandate holder for NRI'sThe whole point of being a Non Resident Indian is to be staying overseas and the whole point of having an NRI account in India is to be able to operate that account remotely.

It is a given that you will never be physically present in India always to operate your account, hence there is a facility to authorize a person in India whom you trust to manage your financial matters.

Hence, to take care of your finances in India, you can appoint a resident Indian you trust – a friend, family member, etc. – to act on your behalf. For example, you can legally authorize your parents to operate your NRI bank account by appointing them as mandate holders.

Under FEMA, NRIs can appoint a resident individual as a mandate holder to operate their


bank accounts. This helps and facilitates easy monitoring and operation of your NRI account. Under FEMA, there is no restriction or definition as to who you can appoint as a mandate holder. It can be anybody whom you trust. However, Banks prefer a close relative of the account holder.


As an NRI, you have accounts in India to provide for your loved ones and dependents here and / or make investments.  You may also have financial obligations in the country in terms of Loan repayments and payments towards other bills/financial commitments. Here is where a mandate holder becomes essential.

A Mandate holder can

  • Withdraw money from your accounts to make local payments, could be towards EMIs or Bills. Issue rupee checks in the NRI account holders name, can use the ATM card in India and issue Rupee Demand Drafts at branches in India.

  • Make investments on your behalf using the funds in the accounts.

  • Renew existing deposits.

  • Transfer money to the NRIs overseas accounts.

  • Deposit Rupee Checks & Rupee Cash (>Rs 50,000 A/C holder’s PAN Card is required) into the NRO accounts.

  • Deposit foreign currency checks for NRE accounts.

  • Request for a statement of the account.


A Mandate holder cannot

  • Open an NRI account.

  • Transfer funds outside India through your NRI account to any other third party account.

  • Transfer funds as a gift to a resident Indian.

  • Pre-terminate your deposits.

  • Change address of the accounts.

  • Deposit checks in the names of the Mandates in the account.

  • Place standing instructions into the accounts.

  • Deposit or withdraw foreign currency cash/drafts/travellers checks.

  • Transfer funds to another NRE or NRO account.


Some points to remember

  • Signatures of all the account holders are mandatory for adding a mandate to the account.

  • Applicant of the account cannot be a mandate holder. Also, only a resident individual can be a mandate holder.

  • Mandate holders need to submit a recent photograph and copies of Identity, Signature and address proofs along with the mandate form. The photocopies of the documents should be self attested and signed by the customer also.

  • Once the mandate holder is registered, he will get a check book facility and ATM/Debit card facility sent to his address.


Some banks offer this facility of adding a mandate holder only when the NRI customer visits India. Some banks extend this facility even if the NRI account holder is overseas, however, the documents of the mandate addition are attested by a Public Notary, Lawyer or the Embassy.


If you want to add a mandate to your account and accede specific powers of financial transactions, the same can be done by getting a Power of Attorney on a legal stamp paper and notarised by a public notary. Please ensure that the specifics of the financial transactions that you want your mandate holder to add are covered in the POA.


About the Author:

The author, Daisy Fernandes has a Masters in Management from SP Jain, a Banker by profession and currently pursuing CFP certification. She can be reached at






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