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Ajay (Staff)     09 November 2019

Power of attorney or letter of mandate

My elderly grandmother, has given me a letter of authority for performing transactions in the bank, signing cheques, fixed deposits etc.

Till recently the bank had no issues with the letter of authority and me signing on her behalf. The other day when I visited the bank, the  branch manager is telling me that I will need to provide a Power of attorney to the bank, to operate the bank account.

I dont think it is correc that they insisit as such. Are there any RBI circulars stating that POA is required?

Request your learned advise.



Learning

 4 Replies

srinu rokkam   09 November 2019

IT IS UPTO THE SATISFACTION OF THE BANK MANAGER. HE IS NOT SATISFYING WITH THE AUTHORITY. HE WANTS POWER OF ATTORNEY FOR THIS PURPOSE. IT IS HIS DISCRETIONARY POWER TO CLAIM POWER OF ATTORNEY. SOME OTHER MAY DO WITH AUTHORITY ONLY. BUT FOR THIS PERSON YOU HAVE TO PRODUCE POWER OF ATTORNEY. THERE IS NO NEED TO VERIFY THE RBI CIRCULARS FOR THIS PURPOSE.

G.L.N. Prasad (Retired employee.)     09 November 2019

You can file RTI Application to RBI DBOD FORT MUMBAI and can seek information as follows:

Information solicited:

1)Please provide the guidelines/directives that state about operations in one account by another as per wishes of the Main depositor.

2)Please inform whether POA is mandatory to operate the account as per RBI guidelines.

You can also file a similar application to that concerned PSB and can get that information.

Ajay (Staff)     11 November 2019

Is the POA necessary to be on stamp paper, if my grandmother is givign it to me, as we are blood relatives?

saherin khan   12 November 2019

Power of attorney is a legal document in which one person gives authority to another to do something on his behalf. The person on whom power of attorney made act as an agent for the person who made the attorney. The agent may have limited or unlimited powers on behalf of his principal as per mention under the contract between them. 


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