It is to be noted that joint operation of resident account with NRI, NRE, FCNR(B), EEFC and RFC account is not permitted as per existing provisions of FEMA.
However , RBI has come with liberalisation of RFC / EEFC accounts may be permitted to be held jointly with a resident close relative, as defined in Section 6 of the Companies Act, 1956.
However , RBI has come with liberalisation of RFC / EEFC accounts may be permitted to be held jointly with a resident close relative, as defined in Section 6 of the Companies Act, 1956.
On a review, it has been decided that resident individuals may be permitted to include resident close relative(s) as defined in the Companies Act, 1956 as a joint holder(s) in their EEFC/RFC bank accounts on ‘former or survivor’ basis. However, suchresident Indian close relative, now being made eligible to become joint account holder, shall not be eligible to operate the account during the life time of the resident account holder.
As part of linearization and develop operational convenient especially after demise of first holder, the following amendments has been made with regard joint operations;
Resident SB Account: Pursuant to this amendment, individual resident in India is permitted to include non-resident close relative(s) as joint holder in the resident Savings bank account on ‘former or survivor’ basis.
NRE / FCNR(B) Account: Non-Resident Indian (NRI) is permitted to open NRE / FCNR (B) with their resident close relatives on ‘former or survivor’ basis.
EEFC / RFC Account: Individual resident in India is permitted to include resident close relative(s) as joint holders in their EEFC / RFC account on ‘former or survivor’ basis.
It is to be observed that in case of NRE / FCNR (B) Account, the resident close relative shall be eligible to operate the account as a Power of Attorney holder during the life time of the NRI/ PIO account holder.
Ref: RBI/2011-12/176A.P. (DIR Series) Circular No. 15 dated 15 September 2011
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