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What is a power of attorney?

What is a power of attorney?

 A Power of attorney (POA) is a written instruction by which one person is empowered to act on behalf of another. That is to say, to do any lawful act or series of lawful acts on behalf of the principal person by his agent. The  Power of Attorney can be made in two types, special and general. Special power of attorney is given for the special purpose and general power of attorney is given for general purpose being intended to operate for a length of time. A Power of attorney is to be stamped in accordance with the provisions of the Indian Stamp Act and also according to various amendments effected by States. It must be duly notarised and not necessarily be registered with the Registrar of Assurances. A Power of attorney executed outside India for use in India should be executed before the Indian Embassy/High Commission in the country in which it is executed and it must be stamped according to the Indian Stamp act within three months of its receipt in India.The Power of attorney shall not contain provisional or conditional clauses like during my absence; during my illness etc. and such clauses are not acceptable to banks. The Power of attorney must contain definite conditions.

In all cases, where accounts are opened with Power of Attorney, the principal should give an undertaking in writing that he shall, in addition to the public notice, notify the bank about cancellation/revocation of power of attorney.

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