What are the restrictions on the power of attorney for NRIs?

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Generally, every NRI appoints a Power of Attorney (PoA) to help NRI overcome any difficulties due to geographical boundaries. However, there are some restrictions on PoA that every NRI and PoA holder should be aware of.

A PoA is not allowed to do the following:

  • Cannot open the NRI account on the name of the NRI.
  • Not allowed to give gifts out of the NRI account.
  • Cannot remit the funds from the NRI account through Demand Draft/Telegraphic Transfer unless mentioned in PoA.
  • Not permitted to raise a loan on NRI's behalf.
  • Cannot transfer funds to the NRE account until permitted.


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