The NRI PoA also allows for the buying, selling, and renting of properties, as well as signing documents for loan agreements
A Power of Attorney (POA) is a legal document that allows an individual to act on your behalf. An NRI Power of Attorney (PoA) is a legal document that allows a person (the principal) to authorize another individual (the attorney or agent) to act on their behalf in India.
What Can An NRI Do With An NRI Power of Attorney
“Using an NRI Power of Attorney, an NRI can perform various functions without his physical presence in India,” says Madhupam Krishna, Securities and Exchange Board of India (Sebi) registered investment advisor (RIA) and chief planner, WealthWisher Financial Planner and Advisors.
These functions include acting as a director of a company, managing and making claims under a WILL or succession matters, and cashing fixed deposits even before maturity or closing bank accounts. Additionally, the attorney can handle all operations related to depository accounts, including issuing instructions for debit and credit cards. The NRI PoA also allows for the buying, selling, and renting of properties, as well as signing documents for loan agreements. Furthermore, the attorney can represent the NRI in court, making it a comprehensive tool for managing a wide range of legal and financial matters in India.
Types Of Power Of Attorney
A General Power of Attorney (GPA) grants broad powers to the agent, allowing them to handle various tasks on behalf of the principal, such as managing bank accounts, selling property, or signing contracts. It is suitable when the principal cannot provide frequent instructions.
In contrast, a Special Power of Attorney (SPA) is limited to specific tasks, like selling a property or representing the principal in court for a particular case. It is ideal for one-time transactions or narrowly defined responsibilities.
Whom Can One Choose As A POA
The POA can be issued in the name of family members like close relatives like parents, siblings, spouses, or adult children who are often chosen as attorneys due to trust and shared interests. In the absence of eligible family members, trusted friends or associates can be designated. “For tasks requiring legal expertise, such as litigation, lawyers or legal consultants can be appointed as agents. If the tasks involve business or organizational activities, PoA can be issued in the name of a specific company representative or a corporate body,” says Krishna.
Keep In Mind
When issuing a Power of Attorney (PoA), NRIs should ensure that the document clearly defines the scope and purpose, whether it's a General Power of Attorney (GPA) or Special Power of Attorney (SPA). They must choose a trustworthy agent to act on their behalf and ensure the PoA is executed following legal requirements in both the country of residence and India.
Notarization and apostille may be necessary for documents issued abroad. It's important to specify limitations, and the duration of validity, and include a revocation clause. Inform relevant institutions about the PoA to prevent misunderstandings or delays in transactions.