A bank does not accept a general power of attorney to run your account. What it accepts is a limited, specific power of attorney — usually typed on the bank's own format — that names the account, lists exactly what the holder may do, carries the attorney's specimen signature, and fixes a limit and a duration. This page sets out the clauses banks insist on, why a general power of attorney is refused, and how the authority is revoked when you no longer want it.
When this matters
People need a power of attorney for a bank account in predictable situations:
- An account holder living abroad who wants a parent or relative to operate the account in India.
- A proprietor or director who wants a manager or accountant to sign cheques and deposits.
- A senior citizen who is unwell and wants a family member to handle withdrawals and fixed deposits.
- A person posted outside the city who needs routine banking done locally.
- A joint account where one holder wants the other, or a third person, to operate it singly.
The authority is created under the Powers of Attorney Act 1882, and the relationship between principal and attorney is governed by the law of agency in the Indian Contract Act 1872.
What the document must contain
- Names and details of both sides. The principal and the attorney, with address, and the relationship between them.
- The account identified. Account number, branch and type — savings, current, fixed deposit or loan account. A power of attorney that does not name the account is refused.
- The exact powers. Deposit money, withdraw, sign cheques, operate net and mobile banking, place standing instructions, open or close fixed deposits, obtain statements, and apply for a duplicate passbook. Each should be listed; "to operate the account" alone is too vague.
- Whether the attorney acts singly or jointly with the principal, and whether the powers are exercisable only during the principal's absence.
- Transaction limits. A per-transaction or aggregate ceiling, which banks frequently impose as a condition of accepting the mandate.
- Specimen signature of the attorney, and often of the principal, attested on the document or on the bank's card.
- Duration — a fixed period or until revoked.
- Delegation clause. Whether the attorney may further delegate, which banks usually prohibit.
- Execution. Signature of the principal, attested by a notary and two witnesses, with the date and place.
For an NRI principal, banks ordinarily require the power of attorney to be executed, notarised and then attested at the Indian embassy or consulate in the country of residence, or apostilled where that applies. Our affidavit and notarial drafting service prepares the document and the accompanying declaration.
Why a general power of attorney is often refused
A general power of attorney grants wide or unbounded authority, without a stated account, limit or expiry. Banks resist it for concrete reasons:
- It gives no clarity on whether the holder may borrow, pledge securities, close deposits, or surrender insurance linked to the account.
- It cannot be monitored against a defined mandate, which increases the bank's exposure if the attorney misuses it.
- Where it purports to deal with immovable property, an unregistered general power of attorney is inadmissible in evidence, so a bank cannot safely rely on it.
- The internal policy of most banks simply requires the branch's own limited format for account operation.
Special authority and general authority
A special (or limited) power of attorney authorises defined acts and nothing more — signing cheques on one account, collecting one document, attending one registration. A general power of attorney purports to authorise the attorney to do anything the principal could lawfully do. Banks, registrars and most institutions prefer the special form because its scope can be checked against the act performed. If the document touches immovable property, it must be stamped and registered under the Registration Act 1908, and for presentation before a registrar it must be authenticated in the manner Section 33 of that Act requires.
Documents to attach
- The power of attorney itself, on the bank's format where the bank has supplied one.
- Identity and address proof of the principal and the attorney.
- The account passbook or statement, to identify the account and branch.
- Specimen signature card of the attorney.
- Embassy attestation or apostille, for a principal signing from abroad.
Revocation and how the bank is notified
Agency can be terminated at any time by the principal, but the termination is effective only when it comes to the knowledge of the attorney, and the principal must give notice to prevent the attorney from binding him further — the rule in Sections 201 and 208 of the Indian Contract Act 1872. In practice:
- Sign a written revocation and give notice to the branch in writing, with acknowledgement.
- Surrender the original power of attorney to the bank, or record that it is lost.
- Ask the branch to note the revocation in the account records and stop honouring the mandate.
- Publish a notice in a newspaper where the bank or a registrar requires public notice of revocation.
Death of the principal also terminates the authority, unless the power of attorney is coupled with an interest in the subject matter, which is rare in a plain account mandate. A power of attorney executed for consideration and conferring an interest may be irrevocable, so the wording matters.
Common mistakes
- Using a general power of attorney where the bank wanted its limited account-operation format.
- Omitting the account number, the limits, or the duration.
- Missing witnesses or an unattested specimen signature.
- Failing to register a power of attorney that deals with immovable property.
- Forgetting to notify the branch on revocation, so the attorney continues to operate the account.
Common questions
Does a power of attorney for a bank account need to be registered?
For mere account operation it is normally notarised, not registered. If it authorises anything relating to immovable property, or is to be used before a registrar, it must be stamped and registered under the Registration Act 1908.
Can a general power of attorney be used to close a fixed deposit?
Only if bank policy allows it and the document expressly covers fixed deposits. Most branches insist on a limited mandate that names the deposit and the permitted acts.
Can I cancel a power of attorney after giving it?
Yes. Notification to the attorney and to the bank ends the authority going forward, though acts already done in good faith before notice remain binding. Surrender the original and get the branch's acknowledgement.
Does the power of attorney lapse on the principal's death?
Yes, unless it is coupled with an interest in the subject matter. The bank must be informed, and the account then passes to the legal heirs or the nominee.
FileX Advocates & Legal Consultants, Kolkata, drafts and files these matters before the Calcutta High Court, City Civil and Sessions courts, magistrate, family, consumer and tribunal forums. Call +91 7439811422 or WhatsApp us for a free first consultation.