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A Power of Attorney (PoA) for NRIs is a formal document enabling a person (the principal) to grant another individual (the attorney or agent) the authority to act on their behalf in India.
An NRI Power of Attorney allows an NRI to carry out several tasks without being physically present in India, such as serving as a company director, handling and claiming matters related to a WILL or inheritance, and encashing fixed deposits before maturity or closing bank accounts.
Moreover, the attorney is authorized to manage all tasks associated with depository accounts, such as issuing directives for debit and credit cards. The NRI PoA also permits the purchase, sale, and rental of properties, along with signing documents for loan agreements.
A Power of Attorney (POA) can be granted to family members such as parents, siblings, spouses, or adult children, who are often selected due to trust and common interests. If no suitable family members are available, trusted friends or associates can be appointed.
There are two types of POAs, one is General Power of Attorney (GPA) and the second one is Special Power of Attorney (SPA).
When NRIs issue a Power of Attorney (PoA), they should ensure the document explicitly outlines its scope and purpose, whether it's a General Power of Attorney (GPA) or a Special Power of Attorney (SPA). They need to select a reliable agent to represent them and ensure the PoA complies with legal requirements in both their country of residence and India.