Loans / Overdrafts:
Loans & overdrafts can be granted to Non-Residents, subject to certain terms and conditions. Loans can also be granted to resident Indians, subject to certain terms and conditions.
Such loans should not be used for-
- 1.The business of Chit fund, or
- 2.As Nidhi Company, or
- 3.Agriculture or plantation activities or
- 4.real estate business; or
- Trading in Transferable Development Rights ( TDRs)
Operations in the Account:
Power of Attorney can be given to Residents to renew the accounts on maturity.
- 6.Power of Attorney holder cannot
- 7.Open an account
- Remit funds abroad except only to the non-resident account. Remittance in favour of account holder is permitted provided specific power have been given in the Power of Attorney.
- 9.Borrow against the deposit