RBI/2011-12/173
A.P. (DIR Series) Circular No. 12
September 15, 2011
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
Savings Bank account maintained by residents in
India – Joint holder - liberalisation
Attention of Authorised Dealer (AD) banks is invited to Regulation 2(vi) of
FEMA Notification No. 5 dated May 3, 2000 in terms of which Non-Resident Indian
(NRI) means a person resident outside India who is a citizen of India or is a
person of Indian origin.
- The Committee to Review the Facilities for Individuals under the
Foreign Exchange Management Act, 1999 has recommended in its Report that
resident individuals may be permitted to include non-resident close
relative(s) (relatives as defined in the Companies Act, 1956) as joint
account holder(s) in their resident bank accounts.
- On a review, it has been decided that individuals resident in India may
be permitted to include non-resident close relative(s) (relatives as defined
in Section 6 of the Companies Act, 1956) as a joint holder(s) in their
resident bank accounts on ‘former or survivor’ basis. However, such non-
resident Indian close relatives shall not be eligible to operate the account
during the life time of the resident account holder.
- AD banks may bring the contents of this circular to the notice of their
constituents/customers concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)
and are without prejudice to permissions/approvals, if any, required under
any other law.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager In-Charge