RBI

RBI allows infusion of capital in overseas branches, repatriation of profits by Indian banks

RBI gives general permission for infusion of capital in overseas branches and subsidiaries and retention/ repatriation/ transfer of profits in these centres by banks incorporated in India

As per existing practice, banks incorporated in India were required to seek prior RBI approval for

  1. infusion of capital in their overseas branches and subsidiaries.

  2. retention of profits in, and transfer or repatriation of profits from these overseas centres.

RBI, in order to provide greater operational flexibility, has removed the requirement of prior RBI approval for above capital infusion/ transfers (including retention/ repatriation of profits) by banks which meet the regulatory capital requirements (including capital buffers). Instead, the banks shall seek approval of their boards for the same.

It has been laid down that while considering such proposals, banks shall analyse all relevant aspects including inter alia the business plans, home and host country regulatory requirements and performance parameters of their overseas centres. Banks shall also ensure compliance with all applicable home and host country laws and regulations.

Banks which do not meet the minimum regulatory capital requirements as laid down, shall be required to seek prior approval of RBI as hitherto.

Further, banks shall report all such instances of infusion of capital and/ or retention2/transfer/ repatriation of profits in overseas branches and subsidiaries within 30 days of such action, to the Chief General Manager-in-Charge, Department of Regulation, Central Office, Mumbai with a copy to Chief General Manager-in-Charge, Department of Supervision, Central Office, Mumbai.

Download RBI Circular Click Here >>

Share

Recent Posts

  • bar-council

Bar Council of India notifies the directions for the election disputes in 2026 State Bar Council election

Bar Council of India notifies the directions for the election disputes in 2026 State Bar Council election Pursuant to the…

8 hours ago
  • Empanelment

IOB Concurrent Audit Empanelment for the Financial Year 2026-27 Last Date: 10.06.2026

Indian Overseas Bank Concurrent Audit Empanelment for the financial year 2026-27 (from 01.07.2026 to 30.06.2027)   Indian Overseas Bank has…

11 hours ago
  • bankruptcy

Once CoC decides to reject Resolution Plan and liquidate CD for SRA’s default, no interference can be made

Once Committee of Creditors in its commercial wisdom, decides to reject the Resolution Plan and liquidate the Corporate Debtor on…

11 hours ago
  • bankruptcy

Applicability of moratorium under IBC on proceedings u/s 138 of NI Act

Supreme Court refers the question of applicability of moratorium under IBC on proceedings u/s 138 of the NI Act to…

1 day ago
  • ICAI

Empanelment of ICAI Exam observer for Sep-Nov 2026 Examinations. Last date: 30.06.2026

Empanelment to act as ICAI exam observers for September & November 2026 CA Examination. Last date to apply is 30.06.2026…

1 day ago
  • Income Tax

In abated search assessments AO’s jurisdiction not restricted to “incriminating material” only

In abated search assessments u/s 153A, AO’s investigative powers are wide and are not restricted to "incriminating material” only –…

3 days ago