NRE/FCNR(B) Joint Accounts with Resident Close Relatives Allowed
Current · Source: Reserve Bank of India · RBI/2011-12/174 · issued 15 Sep 2011 · ~1 min read
Quick answerRBI now permits NRIs/PIOs to open NRE/FCNR(B) accounts jointly with resident close relatives on a 'former or survivor' basis. The resident relative can operate the account as a Power of Attorney holder during the NRI's lifetime.
The rule, in the simplest words
NRIs/PIOs can now open NRE/FCNR(B) accounts jointly with resident close relatives.
The resident relative can operate the account as a Power of Attorney holder during the NRI's lifetime.
The account can be opened on a 'former or survivor' basis, meaning the account can be operated by either the NRI/PIO or the resident relative after the other's death.
How it plays out — a real example
Amit, a forex & trade-finance officer in Indore, helps his client, Rohan, an NRI, open a joint NRE account with his mother, who is a resident of India. Amit explains to Rohan that his mother can operate the account as a Power of Attorney holder during his lifetime, and that the account will be transferred to her name on his death. Rohan is relieved to have a clear plan in place for managing his account and is grateful to Amit for his guidance.
What changed
Previously, NRIs/PIOs were barred from opening NRE/FCNR(B) accounts jointly with any resident. Following a committee recommendation, RBI has now allowed joint accounts with resident close relatives (as defined under Section 6 of the Companies Act, 1956) on a 'former or survivor' basis. The resident close relative can also operate the account as a Power of Attorney holder during the NRI's lifetime.
What it means for you
Banks can now offer NRE/FCNR(B) joint account facilities to NRIs with their resident close relatives, expanding product appeal and easing remittance management. This liberalization simplifies succession planning and account operations for NRI families. AD banks must update their internal procedures and customer communication to reflect this change.
What you must do
Update account opening forms and system rules to allow joint NRE/FCNR(B) accounts with resident close relatives on 'former or survivor' basis.
Train staff on the new eligibility criteria and Power of Attorney operational guidelines for resident close relatives.
Notify existing NRE/FCNR(B) account holders about the new facility through circulars or branch communication.
Ensure compliance with FEMA regulations and verify the 'close relative' definition as per Section 6 of the Companies Act, 1956.
Who it affects
Authorised Dealer (AD) banks, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Resident close relatives of NRIs/PIOs
❓ Common questions
Does this circular apply to existing NRE/FCNR(B) accounts?
The circular permits opening new joint accounts with resident close relatives. It does not explicitly address restructuring of existing accounts; banks should refer to FEMA regulations and operational guidelines for any modifications.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/174
A.P. (DIR Series) Circular No. 13
September 15, 2011
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
NRIs/PIOs holding NRE/ FCNR(B) accounts jointly with
Indian resident close relative - liberalisation
Attention of the Authorised Dealer (AD) banks is invited to Schedules 1 and 2 of FEMA Notification No. 5/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time, in terms of which Non-Resident (External) Rupee Account Scheme [NRE] and Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR(B)], respectively are operated. In terms of the extant provisions contained in para 9(a) of Schedule-1 and Para 11(1) of Schedule-2 of the Notification ibid, NRIs / PIOs are not permitted to open NRE/FCNR (B) accounts jointly with a resident.
2. The Committee to review the facilities for individuals under the Foreign Exchange Management Act, 1999 has in its Report recommended that NRIs may be permitted to open joint FCNR(B) /NRE account with a resident close relative (means relative as defined in the section 6 of the Companies Act, 1956).
3. On a review, it has been decided that Non-Resident Indian (NRI), as defined in FEMA Notification No. 5, ibid, may be permitted to open NRE / FCNR(B) account with their resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on ‘former or survivor’ basis. The resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder.
4. AD banks may bring the contents of this circular to the notice of their account holders concerned.
5. The necessary amendments to Foreign Exchange Management (Deposit) Regulations, 2000 contained in Notification No. FEMA.5/2000-RB dated 3rd May 2000, are being issued separately.
6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager In-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/174 · issued 15 Sep 2011. The plain-English explanation above is BankPulse’s own independent summary.
Update account opening forms and system rules to allow joint NRE/FCNR(B) accounts with resident close relatives on 'former or survivor' basis.
Notify existing NRE/FCNR(B) account holders about the new facility through circulars or branch communication.
📜 Compliance
Train staff on the new eligibility criteria and Power of Attorney operational guidelines for resident close relatives.
Ensure compliance with FEMA regulations and verify the 'close relative' definition as per Section 6 of the Companies Act, 1956.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (Authorised Dealer (AD) banks, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Resident close relatives of NRIs/PIOs), your first concrete step on “NRE/FCNR(B) Joint Accounts with Resident Close Relatives Allowed” is: “Update account opening forms and system rules to allow joint NRE/FCNR(B) accounts with resident close relatives on 'former or survivor' basis.” (RBI issued this 15 Sep 2011).
Circular: RBI/2011-12/174 -- NRE/FCNR(B) Joint Accounts with Resident Close Relatives Allowed
Issued: 15 Sep 2011
Action required: Update account opening forms and system rules to allow joint NRE/FCNR(B) accounts with resident close relatives on 'former or survivor' basis.
Action required: Train staff on the new eligibility criteria and Power of Attorney operational guidelines for resident close relatives.
Action required: Notify existing NRE/FCNR(B) account holders about the new facility through circulars or branch communication.
Action required: Ensure compliance with FEMA regulations and verify the 'close relative' definition as per Section 6 of the Companies Act, 1956.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6706&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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