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    Question

    On what basis is an individual resident Indians

    permitted to include NRI close relatives as a joint holder in resident bank account?
    A former or survivor basis Correct Answer Incorrect Answer
    B either or survivor basis Correct Answer Incorrect Answer
    C A or B Correct Answer Incorrect Answer
    D NRI holder cannot be joint holder for resident bank accounts Correct Answer Incorrect Answer
    E Survivor basis Correct Answer Incorrect Answer

    Solution

    Indian Residents can open a resident bank account jointly with an NRI on ā€œeither or survivorā€ basis according to the Reserve Bank of India (RBI). The term ā€œeither or survivorā€ refers to the condition where both of the account holders can operate the account independently in the absence of the other. Note ā€“ The accounts in India by NRIs (like NRE, NRO or FCNR accounts), can be held by NRI jointly with a resident relative on ā€˜former or survivorā€™ basis. In this case the resident relative can operate the account as a Power of Attorney holder during the life time of the NRI/ PIO account holder.

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