READY RECKONER #15 · PARENTS & CHILDREN ABROAD

My son or daughter lives abroad. What should we organise in India before there is an emergency?

The difficult time to discover a missing nomination, inaccessible account or unclear authority is when your child cannot come home quickly.

30-SECOND ANSWER

Create a family financial continuity file.

Parents and the child abroad should know what exists, who can operate what, where important documents are, which nominations are registered, and how money can legally move between India and abroad. Do this while everyone is available — not during an emergency.

1. Make one “If I cannot come to India” list

Banking

NRE/NRO/FCNR and other relevant accounts, bank/branch, registered mobile/email, maturity dates and nominations. Never write passwords, PINs or OTPs in a shared document.

Investments

Mutual-fund folios, demat/broker relationships, insurance, pensions and major deposits — plus nomination status.

Property

Title-deed location, tax receipts, loan details, rent/tenant information and who can practically handle matters locally.

Key people

Bank/RM, CA/tax adviser, lawyer, insurer and a trusted family contact. Keep official contact details rather than relying only on someone's personal number.

2. Nominee, joint holder and Power of Attorney are not the same thing

Don't treat “I added my father/mother” as a complete answer.

Ask exactly what role is registered: nominee? joint holder? mandate/PoA holder? Each has a different purpose and operating scope.

RBI's NRI-account FAQ states that NRE/NRO accounts can, subject to the applicable conditions, be held with a resident relative on a “former or survivor” basis; it also recognises operation by a resident relative as Power of Attorney holder during the NRI/PIO account holder's lifetime. Confirm the exact mandate and permitted operations with your bank.

3. Parents sending money to a child abroad? Identify the route first

Gift/remittance abroad

RBI's LRS framework permits resident individuals to remit for permitted purposes including gift/donation and maintenance of relatives abroad, within the applicable overall LRS limit and conditions.

Rupee gift to an NRI relative in India

RBI's Master Direction says a resident individual may make a rupee gift to an NRI/PIO relative as defined there by crossed cheque/electronic transfer; the amount is credited to the NRO account and counts within the donor's LRS limit.

Important:

“Relative” can be defined differently under different laws. Do not assume the Income-tax meaning of relative and the FEMA/LRS reference are interchangeable. Check the rule relevant to the transaction.

4. Child sending money to parents in India?

Record whether it is a gift, family maintenance/support, loan repayment or another genuine purpose. Keep the banking trail and supporting explanation. Tax treatment for a receipt depends on the facts and the applicable Income-tax provisions — don't label every family transfer casually.

5. Prepare for the situations families avoid discussing

✓ Parent is hospitalised and the child cannot fly immediately.
✓ Child abroad becomes incapacitated.
✓ A property must be managed, rented or sold.
✓ A deposit/insurance/investment matures.
✓ Mobile number changes and Indian OTP access fails.
✓ A death occurs and the family must identify accounts, nominees and documents.

For property sale, succession, estate planning or broad PoA powers, obtain appropriate legal advice; a banking mandate alone may not solve the wider problem.

The 20-minute family check

□ Do parents know which Indian bank accounts the child maintains?
□ Are residential status, address and KYC/FATCA details current?
□ Are nominations checked across bank, MF, demat and insurance?
□ Is any resident joint-holder/PoA/mandate arrangement intentional and correctly documented?
□ Can the family locate property and insurance documents?
□ Does everyone know whom to contact first during an emergency?
□ Is there a safe record of assets without storing passwords, PINs or OTPs?

Verify the exact rule

RBI FAQ · Accounts in India by Non-residents · 16 Jan 2025 — joint holding & PoA operation → RBI Master Direction · Liberalised Remittance Scheme — Para 7: gift/maintenance abroad; Para 19: rupee gift to NRI/PIO relative → RBI A.P. (DIR Series) Circular No.17 · 16 Sep 2011 — rupee gift by resident to NRI close relative →

Last verified: 17 August 2026. Bank operating mandates, tax treatment, succession and property authority depend on the facts and documents. Confirm current requirements with the relevant bank/intermediary and obtain tax/legal advice where needed.

Could your family handle one financial emergency tomorrow?

If the answer is “I'm not sure”, that's the reason to organise the file now.

Build our family continuity checklist →