Presented By-Group 1(B) Aditya Prasad Parida-BIFS/11-13/01 Ankur Saha-BIFS/11-13/05 Satyanarayan Sahoo-BIFS/11-13/14 Tapas Ranjan Mohapatra-BIFS/11-13/16

Customers Attorney
Customer gives power of attorney to operate his bank account. Different from an ordinary mandate.

The POA holder is an agent and the account holder is the

principal.
Can be for specific(e.g. sale of property) or general(e.g. authority

to act for many activities including banking) purpose.

Special Provisions
The POA must be stamped and registered with the Registrar of

Documents or attested by a notary public.

The POA must be in force at the time of opening the account. The agent can act within the scope of authority given to him. The period of authority must be noted at the top of the account. The banker should specifically record the powers which have not

been entrusted by the principal to the attorney(e.g. if the power to overdraw is not entrusted).
The POA holder must be properly identified & his address noted.

 Account should be opened in the name of the principal with the

following heading: XYZ (principal) by his agent ABC.

If the agent signs Per Pro XYZ, it indicates that the agent has limited

authority only to sign such cheques.

The banker should ensure that the POA does not contain any

conditions or events that could create difficulty to the banker(e.g. condition-during my absence from India indicates that on his return the POA is cancelled, In this the bank would not exactly know when the person had returned.

A POA holder cannot delegate his authority to another.

Termination Of Agency
According to Section 201 of the Indian Cotract Act,1872 an agency is terminated If the principal revokes his authority; ii. If the agent renounces the business of agency; iii. If the business of agency is completed; and iv. If the principal or the agent dies, becomes insolvent or of unsound mind.
i.

Note:- The death, insolvency or insanity of the principal revokes the authority vested in the agent and the latter ceases to act as agent of the principal.