NRIs can now open joint accounts with resident Indian

MUMBAI: Liberalising the foreign exchange rules, the Reserve Bank today allowed NRIs to hold joint account with Indian residents, a move that would help increase remittances.

The central bank has also permitted sale proceeds of foreign investments in India to accrue to NRE/FCNR accounts after tax deductions, under the Foreign Exchange Management Act.

Foreign Currency Non-Resident (FCNR) account and Non-Resident External (NRE) account are opened by Non-Resident Indians (NRIs) with the Indian banks.

As per the recommendations of the committee constituted to review facilities available under FEMA, the central bank has taken such steps.

RBI has allowed residents of India to include non-resident close relative in their resident bank accounts on 'former or survivor' basis. However, such non-resident relative shall not be eligible to operate the account during resident's lifetime, it said in a notification.

It also permitted NRIs to open NRE/FCNR account with their resident close relative. In this case, the resident relative can operate the account as a power of attorney holder.

Similarly, the central bank has doubled the slab under which securities worth USD 50,000 per fiscal can be transferred by resident Indians to non-resident individuals 'by way of gift' from the present level of USD 25,000.

RBI has also allowed resident individuals to include resident close relative in their EEFC (Exchange Earners Foreign Currency) or RFC(Resident Foreign Currency) as a joint account holder.

Custodial death: HC dismisses Punjab’s plea

Chandigarh, September 21

The State of Punjab’s attempts to wriggle out of a tight corner, in a case involving the death of an undertrial in jail due to delayed medical treatment, have failed to find favour with the Punjab and Haryana High Court.
Dismissing the State’s appeal, a Division Bench has not only upheld the interim compensation of Rs 2.5 lakh granted to the inmate’s widow Krishna Devi, but also ruled there was negligence on the part of the jail authorities in providing timely aid.
The State had filed the appeal against the Single Judge’s orders, even though Moga Deputy Commissioner had also recommended in his letter dated October 17, 2006, the grant of Rs 2.5 lakh as assistance to the widow and her family.
Taking up the matter, the Bench of Acting Chief Justice M.M. Kumar and Justice Gurdev Singh asserted: “This is a case of custodial death. The State of Punjab has filed the instant appeal against order dated December 14, 2010, whereby the Single Judge allowed the compensation of Rs 2.5 lakh to the widow of the deceased, after recording the finding that there was failure to perform duty by the jail authorities with due diligence”.
The Bench added: “The basis of the finding was that the undertrial was not suffering from any ailment, which could be the cause of his sudden death.
The jail authorities did not even assert that he was rushed to the hospital timely and was given medical aid.
“A hale and hearty person having no ailment history and who earns his livelihood by selling eatables on a bicycle could not have met with a sudden death but for the lack of timely medical assistance.
Observing the undertrial was a BPL ration card holder, the Bench added: “We are of the considered opinion that no interference in this appeal filed by the State would be warranted.
“The meagre amount of Rs 2.5 lakh awarded as compensation to the widow of the deceased and her family cannot be regarded as without a reasonable cause.
There is negligence on the part of the jail authorities to grant timely medical aid to the jail inmate. There is, thus, no merit in the appeal and the same is hereby dismissed”.