The NRI Car Loan Power of Attorney (POA) is a legal document used when a Non-Resident Indian (NRI) agrees to act as a guarantor for a car loan from State Bank of India (SBI) but cannot be physically present to sign the paperwork.

Here are the key points of the document:

Purpose and Scope

• Facilitation of Guarantee: The NRI (the “executant”) appoints a trusted person (the “Attorney”) to sign guarantee agreements on their behalf because they cannot do so expeditiously in person.

   

• Ratification: The NRI formally agrees to accept and “ratify” all lawful actions taken by the Attorney regarding the loan guarantee as if they had performed the actions themselves.

Powers Granted to the Attorney

The Attorney is authorized to perform several specific tasks:

• Execution of Documents: Sign the Guarantee Agreement and any other necessary documents required by SBI for the car loan.

   

• Financial Responsibilities: Pay necessary stamp duties or any other fees required during the execution of the guarantee.

• Legal Representation: Appoint advocates or solicitors if necessary and pay their professional fees.

• Incidental Acts: Perform any other actions deemed necessary to complete the guarantee process.

   

Execution Requirements

• Identification: A photograph of the Attorney must be pasted on the document and attested by the NRI(s) providing the power.

• Witnessing: The document must be signed in the presence of a Notary Public or Magistrate.

• Mandatory Attachments: The NRI must enclose a copy of the standard SBI Guarantee Agreement format—which can be received via email or electronic download—with the POA.

   

• Multiple Guarantors: If there is more than one NRI guarantor, the names and addresses of all must be provided in the document.

The Special Power of Attorney (POA) for NRE, NRO, or FCNR (B) accounts allows a Non-Resident Indian (NRI) to appoint a resident Indian to manage their bank accounts under specific conditions.

Here are the key points based on the provided document:

Execution Requirements

The rules for setting up the POA depend on where the document is signed:

• If executed in India:

  • The Attorney must be a resident of India.

  • It must be on non-judicial stamp paper of appropriate value and duly notarized.

  • Signatures must be attested by a Notary Public or a Judicial Magistrate.

  • The account holder must sign every page and initial any filled-in blanks.

• If executed outside India:

  • The Attorney must be a resident of India.

  • Signatures must be authenticated by an SBI Foreign Office official or the Indian Embassy/Consulate/High Commission in that country.

  • Stamp duty must be paid in India within three months of the document’s arrival in the country.

  • The account holder must sign every page and initial any filled-in blanks.

     

Permitted Actions (What the Attorney CAN do)

The appointed Attorney is authorized to perform the following on the specific account:

• Operate the designated NRE, NRO, or FCNR (B) account.

• Make local payments in Rupees, including eligible investments that comply with RBI regulations.

• Remit the account holder’s current income (net of taxes) outside of India.

   

• Sign cheques and withdrawal orders for the purposes mentioned above.

Restrictions (What the Attorney CANNOT do)

To protect the account holder, the Attorney is strictly prohibited from:

• Repatriating funds to anyone other than the account holder.

• Making payments as gifts to any resident Indian on behalf of the account holder.

• Transferring funds to other NRO or NRE accounts.

• Opening or closing NRE, NRO, or FCNR (B) accounts.

• Applying for “anytime” banking channels such as Internet Banking (INB) or ATM services.

Documentation

• Identification: The Attorney must provide a self-attested photocopy of a government-issued ID (e.g., Aadhaar, PAN, Passport).

   

• Photographs: Both the account holder and the Attorney must provide passport-sized photographs; the Attorney’s photo must be attested by the account holder.

   

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