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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 – 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 survivor’ 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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