Banking · Legal Aspects of Banking
In a housing loan transaction involving a Non-Resident Indian (NRI) who cannot be physically present in India for the execution of the loan documents and the registration of the mortgage, the bank allows the use of a Power of Attorney (PoA). Which of the following is a mandatory legal requirement for a Power of Attorney executed outside India to be valid for creating a mortgage in an Indian bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Only a General Power of Attorney is acceptable for housing loans, and a Special Power of Attorney is legally invalid for creating a mortgage.
- 2The PoA must be executed in the presence of and attested by the Indian Embassy or Consulate in the country of residence and subsequently adjudicated/stamped in India within 3 months.✓
- 3The PoA must be executed on a stamp paper of the country of residence and does not need to be adjudicated in India.
- 4The PoA must be printed on plain paper and does not require any form of attestation or stamping in India.
Correct answer
The PoA must be executed in the presence of and attested by the Indian Embassy or Consulate in the country of residence and subsequently adjudicated/stamped in India within 3 months.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Legal Aspects of Banking MCQs →Want more practice questions on Legal Aspects of Banking?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Legal Aspects of Banking